Anduril Partners With Germany's Rheinmetall To Build Smart, Autonomous Air Systems And Rocket Motors For Europe's Defense Amid CEO Palmer Luckey's IPO Push

Defense technology firm Anduril Industries has formed a strategic partnership with German defense giant Rheinmetall to co-develop autonomous air systems and propulsion capabilities for the European market.

What Happened: Anduril Industries and Rheinmetall announced a collaboration to jointly develop three core defense systems for European deployment.

The partnership focuses on integrating Anduril’s Barracuda low-cost autonomous air vehicle and Fury high-performance multi-mission aircraft into Rheinmetall’s digital sovereignty framework called “Battlesuite.” The companies will also explore solid rocket motor production for European defense applications using Anduril’s manufacturing approaches.

“This is a different model of defense collaboration, one built on shared production, operational relevance, and mutual respect for sovereignty,” said Brian Schimpf, CEO of Anduril Industries. Rheinmetall CEO Armin Papperger emphasized the focus on “autonomous capabilities that are quick to produce, modular, and aligned with NATO’s evolving requirements.”

Why It Matters: Last week, Anduril CEO Palmer Luckey confirmed the defense tech firm’s IPO plans, saying the company must go public to compete for trillion-dollar contracts like the F-35 program.

Invest in Real Estate with as Little as $10

The collaboration builds on Anduril’s recent defense partnerships, including its alliance with Archer Aviation Inc. ACHR for U.S. Department of Defense hybrid aircraft development, with Archer raising $430 million to support the defense program.

The defense sector consolidation reflects a broader shift where tech-focused companies like Palantir Technologies Inc PLTR and Anduril lead a consortium competing against traditional contractors like Lockheed Martin Corp. LMT and RTX Corp. RTX for the $850 billion U.S. defense market through AI-powered solutions and rapid innovation approaches.