Italy’s Leonardo, Türkiye’s Baykar sign MoU for drone joint venture

Italy’s defense giant Leonardo has signed a memorandum of understanding (MoU) with Türkiye’s Baykar to establish a joint venture in unmanned aerial vehicle (UAV) technology.

The agreement marks a significant step in strengthening European drone capabilities, with both companies predicting the regional UAV market will be worth $100 billion over the next decade.

Leonardo and Baykar form strategic UAV partnership

Leonardo CEO Roberto Cingolani emphasized the importance of the new collaboration, stating that the joint venture will play a crucial role in the future of defense and unmanned systems.

“With Baykar, we are creating a new reference player in unmanned technologies, which will play an increasingly central role in the future of defense,” Cingolani said.

“Today, we are signing a new international alliance that allows a significant leap forward in the field of unmanned systems, opening up new market opportunities, especially in Europe.”

Kizilelma UCAV could become a loyal wingman to sixth-generation platforms, says Leonardo CEO Roberto Cingolani as he announces plans for a joint venture with Baykar in Rome.

Leonardo CEO Roberto Cingolani: (Memorandum of understanding with Baykar) “The production facilities will be in both Italy and Türkiye. The joint venture will be headquartered in Italy. The two companies have been cooperating on a commercial level for 4-5 years and now we have decided to take this partnership to a further level. Europe has a gap in unmanned technologies for various reasons, and it is very important to guarantee global security in such a complex period as the one we are living in.”

Board Chairman of Baykar / CTO Selcuk Bayraktar: “We have been working with Leonardo for four months. We are collaborating on this issue, especially on radar systems. The synergy and chemistry worked well between us. Today, Baykar is one of the most important designers and manufacturers of UAVs. We have exported UAVs to 36 countries. 90 percent of our income comes from UAV exports.”

As a global leader in the development, production and export of armed unmanned aerial vehicles, Baykar has always focused on pushing the boundaries of innovation in the field of unmanned aviation. Leonardo’s strong foundation in world-renowned C4I systems and artificial intelligence technologies further enhances the impact of this collaboration.

This strategic partnership with Leonardo is an important milestone in expanding our technology footprint and strengthening our global presence.

At Baykar, we will develop next-generation solutions that will determine the future of unmanned aerial systems by combining our ethical AI-supported technologies with Leonardo’s vast capabilities in the field of artificial intelligence technologies.

This synergy will bring AI-powered air superiority for the future.

Board Chairman of Baykar / CTO Selcuk Bayraktar

Haluk Bayraktar the CEO of Baykar reportedly says that Baykar’s Akinci MALE UCAV is the focus platform for the new Leonardo and Baykar joint venture, as the platform already features some Leonardo technologies, and this market is perceived to be the biggest gap in the European market.

The joint venture will focus on developing and manufacturing advanced UAVs, with Baykar aiming to leverage Leonardo’s expertise to expand its presence in Europe.

Italy and Türkiye deepen defense and aerospace ties

The signing of the MoU follows a growing trend of defense cooperation between Italy and Türkiye. In December, Italy approved Baykar’s acquisition of Piaggio Aerospace, a historic Italian aviation and defense company known for its aircraft and aeronautical engines.

The move was seen as a strategic step for Baykar to gain a foothold in the European aerospace sector.

Both countries have previously expressed interest in expanding joint defense and aviation investments, with this latest partnership marking a significant milestone in their collaboration.

Baykar’s global expansion and leadership

Baykar, Türkiye’s leading drone manufacturer, has exported its UAVs to dozens of countries worldwide.

Its Chief Technology Officer, Selcuk Bayraktar, has played a key role in the company’s growth. Bayraktar was Türkiye’s top income taxpayer in 2023 for at least the third consecutive year, according to the nation’s revenue administration.

Leonardo and Baykar estimate that the European UAV market will reach $100 billion over the next decade, driven by increasing defense budgets and rising demand for advanced unmanned systems.

The joint venture is expected to position both companies as dominant players in this rapidly expanding sector.

Since the beginning of the year, Leonardo’s stock has surged by 74%, reflecting strong investor confidence in its strategic direction and growing role in the defense industry.