DroneShield Ltd (ASX:DRO, OTC:DRSHF) has established counter-drone manufacturing in the European Union, expanding its industrial footprint in the region and increasing production capacity as demand for sovereign defence capability grows.
The move comes amid stronger momentum across Europe, where national military investment is rising under the ReArm Europe Plan/Readiness 2030 initiative, driving demand for mature, scalable counter-drone systems.
Under a new collaboration with an established manufacturing partner, production of European-made counter-drone systems is now underway, with first deliveries scheduled for mid-2026.
The contractor will provide full turnkey assembly and component manufacturing, including printed circuit board assembly, precision machining, cable and wire harness assembly, as well as related assembly and testing labour.
DroneShield said it has established, and will continue to expand, a primarily EU-based supply chain to support the operation. The new facility is currently the company’s only production line outside Australia.
The European expansion forms part of DroneShield’s broader global manufacturing strategy, which is aimed at increasing combined annual production capacity from about $500 million in 2025 to an expected $2.4 billion by the end of 2026.
DroneShield shares were last trading 1.2% higher.