Rheinmetall wins €300mn drone order from German armed forces

TL;DR

German parliament approved a €300mn contract for Rheinmetall to supply kamikaze drones to the armed forces.[[1]](https://www.ft.com/content/a628efc5-8d04-4863-9818-bb78436b508b)[[2]](https://www.ft.com/content/a628efc5-8d04-4863-9818-bb78436b508b?syn-25a6b1a6=1)
The Bundestag's budget committee signed off on the deal for loitering munitions like the FV-104 Raider system.[[1]](https://www.ft.com/content/a628efc5-8d04-4863-9818-bb78436b508b)
This boosts Bundeswehr drone capabilities for NATO's eastern flank amid Russia tensions.[[3]](https://www.ad-hoc-news.de/boerse/ueberblick/rheinmetall-poised-for-major-drone-contract-approval/69059886)

The story at a glance

The Financial Times reports that Germany's Bundestag budget committee has approved a €300mn order for Rheinmetall to deliver kamikaze drones, or loitering munitions, to the Bundeswehr. Rheinmetall, the country's largest defence firm, will supply systems such as the FV-104 Raider after earlier testing setbacks against startups like Helsing and Stark Defence. The news breaks now as part of ongoing efforts to equip the Panzerbrigade 45 in Lithuania. This follows February approvals for similar €270mn contracts to the startups.[[1]](https://www.ft.com/content/a628efc5-8d04-4863-9818-bb78436b508b)[[2]](https://www.ft.com/content/a628efc5-8d04-4863-9818-bb78436b508b?syn-25a6b1a6=1)[[3]](https://www.ad-hoc-news.de/boerse/ueberblick/rheinmetall-poised-for-major-drone-contract-approval/69059886)

Key points

Contract value is €300mn initial tranche, part of a potential €2.4bn framework for thousands of drones including ground stations and simulators.[[4]](https://table.media/en/security/news-en/the-federal-government-plans-to-purchase-rheinmetall-combat-drones-for-up-to-eur-24-billion)
Drones are kamikaze or loitering munitions designed for one-way attacks on targets like tanks, to equip the Bundeswehr brigade in Lithuania.[[5]](https://www.aerospace-and-defence.com/rheinmetall-raider-drone-operational-readiness-concerns-a-3bf5ae81d5091f5c653a1264840bd414)
Rheinmetall's FV-104 Raider faced doubts after limited tests showed booster failures and noise issues, but recent demonstrations swayed officials.[[5]](https://www.aerospace-and-defence.com/rheinmetall-raider-drone-operational-readiness-concerns-a-3bf5ae81d5091f5c653a1264840bd414)
Follows Bundestag approvals in late February for €268mn-€540mn deals with Helsing (HX-2) and Stark Defence (Virtus), capping each at €1bn options.[[6]](https://www.smgconferences.com/editors-corner/6616-news--germany-approves-initial-contracts-to-procure-oneway-attack-drones-from-domestic-manufacturers)
Total programme could reach €4.4bn for several thousand units, marking Germany's push into drone warfare learned from Ukraine.[[7]](https://www.bluewin.ch/en/news/international/german-parliamentary-committee-approves-kamikaze-drones-for-the-military-3114794.html)

Details and context

Germany's shift to kamikaze drones responds to lessons from Ukraine, where cheap loitering munitions have changed battlefield tactics against armoured threats. The Bundeswehr previously lacked such systems, relying on traditional artillery.

Rheinmetall rejoins after missing initial awards due to development delays on the Raider—described internally as a "PowerPoint project" over just two flawed tests on mock targets.[[5]](https://www.aerospace-and-defence.com/rheinmetall-raider-drone-operational-readiness-concerns-a-3bf5ae81d5091f5c653a1264840bd414) Successful later demos to NATO customers helped secure this tranche.

The three-supplier approach (Rheinmetall, Helsing, Stark) diversifies risks and speeds delivery for Panzerbrigade 45, NATO's frontline against Russia in Lithuania. Serial production hinges on qualification by April 2027.[[3]](https://www.ad-hoc-news.de/boerse/ueberblick/rheinmetall-poised-for-major-drone-contract-approval/69059886)

Key quotes

None reliably sourced from the article.

Why it matters

Germany's drone build-up strengthens NATO deterrence on its eastern border, countering Russia's advantages seen in Ukraine.

Businesses like Rheinmetall gain from booming orders, investors see revenue growth, while consumers face higher defence spending trade-offs.

Watch for delivery timelines, Raider qualification tests, and follow-on tranches up to €2.4bn, though delays remain possible.[[3]](https://www.ad-hoc-news.de/boerse/ueberblick/rheinmetall-poised-for-major-drone-contract-approval/69059886)