Elbit Systems Diehl-Defence SkyStriker agreement ceremony.
BERLIN — In a major move to accelerate the modernization of the German Armed Forces, defense giants Elbit Systems and Diehl Defence announced a strategic partnership at the ILA Air Show in Berlin. The collaboration centers on bringing the SkyStriker, an advanced loitering munition system, into the arsenal of the Bundeswehr.
The agreement, signed on June 11, 2026, aims to answer Germany’s urgent call for sovereign, high-precision strike capabilities amid a rapidly evolving European security landscape. If awarded the contract, the two companies will handle everything from local manufacturing and assembly to long-term operational support.
The SkyStriker: Precision from the Sky
Loitering munitions—often referred to as “suicide drones” or “kamikaze drones”—have fundamentally changed the dynamics of modern warfare. The SkyStriker represents the cutting edge of this technology. It is an autonomous, long-range system designed to hover over a designated area, locate and track high-value targets, and strike with extreme accuracy under operator control.
The system boasts a flight endurance of over two hours and a operational range exceeding 200 kilometers. It can carry a warhead weighing up to 10 kilograms, offering a devastating “seek and strike” capability. Furthermore, the SkyStriker is highly adaptable; it can be launched from land vehicles, naval vessels, customized containers, aircraft, and EuroPULS rocket launchers, giving commanders massive tactical flexibility across multiple operational domains.
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Strengthening Sovereign Capabilities
A core focus of the partnership is ensuring that Germany maintains industrial sovereignty over its defense tech. By utilizing Elbit Systems Deutschland (Elbit’s German subsidiary) alongside Diehl Defence’s extensive infrastructure, the production pipeline will remain deeply rooted in local soil.
The agreement guarantees that the manufacturing, integration, and qualification testing will take place at Diehl Defence facilities. This setup is designed to boost the German defense industry, create high-tech jobs, and ensure that the Bundeswehr relies on a secure, domestic supply chain for maintenance and future upgrades.
Elbit Systems SkyStriker UAV.
Leadership Alignment on a Modern Military
Executives from both companies emphasized that the alliance is perfectly tailored to meet Germany’s current defense priorities, which heavily favor advanced autonomy, reconnaissance, and precision strike assets.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, highlighted the strategic value of the European expansion. “The partnership with Diehl Defense, together with the strong local presence of Elbit Systems Deutschland, is another important step in strengthening our long-standing presence in Europe,” Machlis said. “By combining Diehl’s deep experience in system integration and production with Elbit’s advanced loitering munition technology, we aim to provide a powerful and future-ready solution for the German Armed Forces.”
Helmut Rauch, CEO of Diehl Defence, echoed the sentiment, focusing on national security benefits. “Diehl Defence is proud to partner with Elbit Systems in the field of loitering munition to strengthen Germany’s capabilities in this segment,” Rauch stated. “This cooperation does not only strengthen the development of sovereign capabilities but also the German defense industry.”
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Industry Powerhouses Combine Forces
The partnership brings together massive technical expertise. Elbit Systems, a global defense technology leader based in Israel, brings a deep ecosystem of battlefield-tested technology. Its German arm, based in Ulm, specializes in radio communications, sensors, and electronic warfare, ensuring the technology complies with strict European standards.
Diehl Defence, headquartered in Überlingen, is a titan of ground-based air defense and guided missiles for the German military. Employing around 6,000 people and bringing in over 2.5 billion euros in annual sales, Diehl provides the massive industrial muscle and systemic integration experience required to integrate the SkyStriker seamlessly into the Bundeswehr’s existing framework.
As geopolitical tensions push European nations to rethink their defense readiness, the Elbit-Diehl alliance positions the SkyStriker as a frontrunner to redefine Germany’s tactical capabilities in the skies.
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