Counter-drone leader DroneShield (ASX:DRO) has launched manufacturing operations within the European Union, marking a pivotal expansion of its industrial footprint.
The move aims to address the surging demand for sovereign defence capabilities as national military investments across the continent accelerate under the ReArm Europe Plan and the Readiness 2030 initiative.
In a landmark collaboration with an established European partner, DroneShield has commenced the production of advanced counter-unmanned aircraft systems technology, with the first deliveries scheduled for mid-2026.
The facility represents the company's only production line outside of Australia and will facilitate full turnkey assembly.
The operation encompasses high-precision processes including printed circuit board assembly, precision machining, and complex wire harness integration.
By cultivating a primarily EU-based supply chain, DroneShield is positioned to provide mature, scalable solutions directly to European partners.
The expansion is a cornerstone of the company's broader global strategy; internal projections suggest a massive scaling of total annual production capacity, rising from approximately $500 million in 2025 to an anticipated $2.4 billion by the conclusion of 2026.
Industry analysts suggest that localising production is a critical step in navigating the current geopolitical climate, ensuring rapid deployment and technical sovereignty for EU member states.
At the time of reporting, DroneShield's share price was $4.09.