Serial production of more than 5,000 combat drones for Ukraine has begun in Munich, marking a major expansion of European drone manufacturing for the Ukrainian military.

The production is being launched by German-American defense company Auterion together with its Ukrainian joint-venture partner Airlogix, DPA reports.

Under a contract worth approximately €300 million, the companies are expected to deliver two drone models by mid-2027. The systems will offer medium-range and extended-range capabilities, with the longest-range version able to fly up to 1,500 kilometers.

Auterion will be responsible for the drones’ software, while Airlogix will handle the hardware and manufacturing. The companies say the arrangement is intended to establish the foundation for long-term cooperation.