U.S. defense technology company Anduril Industries has announced a partnership with German defense firm Rheinmetall to jointly develop drones and missile systems tailored for European clients.

According to reports, the agreement includes plans to build European versions of Anduril’s Fury drone and Barracuda cruise missile. Both systems will use local suppliers and be tailored to European requirements. The partnership also explores developing solid rocket motors used in missiles.

Anduril cofounder Trae Stephens called the move “a tremendous opportunity” to build international relationships and grow into new markets. 

“We’re seeing this as a tremendous opportunity to really hit the international markets and figure out what relationships, partnerships, so forth, are going to be required to help us grow into these new markets,” Stephens told Breaking Defense.

Rheinmetall CEO Armin Papperger said the partnership will produce new systems that are modular, fast to build, and in line with NATO needs.

“By integrating Anduril’s solutions into Rheinmetall’s European production setup and digital sovereignty framework, we’re building on that foundation to bring new kinds of autonomous capabilities into service, ones that are quick to produce, modular, and aligned with NATO’s evolving requirements,” said Papperger.

Anduril is entering Europe as countries there increase military spending, driven by the war in Ukraine and concerns about future U.S. defense support.

Greg Kausner, Anduril’s head of global defense, said interest from European buyers is increasing, with many countries seeking more affordable, autonomous systems to complement their conventional forces.