IRIA News

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Leading defense manufacturers Leonardo and Baykar signed a memorandum of understanding to jointly produce next-generation Unmanned Aerial Systems (UAS). The collaboration marks a key step in European defense, with demand expected to hit $100 billion in a decade.

Under the agreement, the Italian and Turkish companies will establish a joint venture that will focus on the design, development, production, and maintenance of UAS. The partnership will be headquartered in Italy and will utilize Leonardo’s extensive facilities.

Baykar, the renowned Turkish manufacturer behind the Bayraktar TB2 combat drone, will contribute its expertise in unmanned platforms, while Leonardo will provide decades of experience in mission systems, payloads, and European aerospace certification.

Italian defense minister Guido Crosetto welcomed the partnership, emphasizing its strategic significance. “An important opportunity to enhance our country’s operational and technological capabilities, contributing to global security and technological progress,” he stated.

Use of AI and next-gen technologies

A key focus of the partnership will be the integration of artificial intelligence (AI) into unmanned aerial systems. Baykar Chairman Selcuk Bayraktar highlighted the importance of AI-driven technologies in modern warfare.

“Together, this synergy will bring ultimate AI-driven air supremacy for the future,” Bayraktar said, adding that Baykar’s expertise in ethical AI-driven technologies will be combined with Leonardo’s immense capability in AI development to create advanced solutions.

Leonardo CEO and General Manager Roberto Cingolani echoed this sentiment, emphasizing the evolving nature of warfare. He noted that future conflicts will increasingly involve drones, AI, and space technologies, areas in which the joint venture aims to excel.

“In this context, we are convinced that technological cooperation is both necessary and urgent to accelerate progress and ensure global security,” Cingolani stated.

Strengthening European defense

This partnership aligns with recent European defense trends, particularly in light of increasing geopolitical tensions and security challenges. The Italian government’s approval of Baykar’s acquisition of Piaggio Aerospace in December 2024 laid the groundwork for deeper cooperation between Italy and Turkey in the aerospace and defense sectors.

Additionally, Turkish foreign minister Hakan Fidan recently stressed Turkey’s essential role in European security. “A new European security architecture is not possible without Turkey,” he stated in a news conference. This joint venture further underscores Turkey’s strategic importance in the region’s defense landscape.

Competitive UAS market

The UAS market is becoming increasingly competitive, with leading defense firms across the world investing in drone technologies. By combining Baykar’s proven success in drone warfare with Leonardo’s deep-rooted expertise in aerospace engineering, the joint venture is poised to deliver cutting-edge solutions for both European and international markets.

Baykar’s Bayraktar TB2 has already demonstrated its effectiveness in various conflict zones, making it one of the most sought-after combat drones in modern warfare. Leonardo, on the other hand, brings a wealth of experience in avionics, electronic warfare systems, and mission payloads, essential for equipping next-generation drones with superior operational capabilities.

This collaboration is expected to accelerate the development of AI-integrated, autonomous drone systems capable of operating in contested environments, enhancing both surveillance and combat effectiveness.

As the joint venture progresses, defense analysts will closely watch how Leonardo and Baykar navigate the challenges of regulatory approvals, technological integration, and market competition. If successful, the partnership could pave the way for further European defense collaborations and solidify Turkey’s role as a critical player in shaping the continent’s security framework.