Rheinmetall Takes ‘Significant’ Stake in U.S. Drone Software Firm Auterion to Strengthen Defence Collaboration
Auterion CEO Lorenz Meier said that having German defence group Rheinmetall as a “significant” shareholder will help the U.S.-based drone software company expand its order book and strengthen its position in the defence technology market. He emphasised that the investment does not signal a takeover.
Rheinmetall’s investment, announced earlier this week, builds on an existing partnership between the two firms. Auterion already supplies software for some of Rheinmetall’s drones. Meier told Reuters that the direct stake would “further deepen collaboration” and open the door to new contracts, particularly in the German market.
While Meier declined to reveal the exact size of Rheinmetall’s shareholding, he clarified that it is not a blocking minority. “We’re incredibly pleased with this honour, especially in the German market,” he said, adding that closer cooperation could help Auterion secure additional defence projects.
Strong Collaboration to Drive Innovation
Rheinmetall CEO Armin Papperger confirmed on Tuesday that the company had acquired shares in Auterion but provided no details on the size of the stake. He described the move as part of Rheinmetall’s strategy to expand rapidly through mergers, acquisitions and targeted investments.
Meier stressed that Auterion remains independent and capable of operating autonomously for decades. The company, founded in 2018, became profitable this year and has annual revenue of about €100 million ($115 million). It currently employs 160 people, with both figures expected to rise.
The two firms signed a long-term cooperation agreement in December 2024, focusing on drone technology components and developing a common industry standard for drone control and operation in complex environments. Auterion is also exploring acquisitions to enhance its software capabilities.
Expanding Orders and Global Reach
Auterion’s software is being used in Rheinmetall drones designed for loitering munitions — systems that hover over a target before striking. The company’s clients already include the United States, Ukraine, the Netherlands, Britain and Taiwan. Meier added that Auterion expects to secure an order from Germany soon, following the recent demonstration of a drone swarm control system.
Rheinmetall is planning a major internal restructuring from next year to align with shifting priorities, including the creation of a new air defence division projected to generate mid-term sales of between €3 billion and €4 billion. Papperger said the demand surge was largely driven by Europe’s growing concern over drone incursions and airspace security.
The strengthened partnership between Rheinmetall and Auterion highlights how defence and technology firms are joining forces to advance next-generation drone and air defence systems amid heightened global security demands.
with inputs from Reuters
