Italian defense giant Leonardo and leading Turkish defense firm Baykar Technologies have entered into a partnership to jointly develop and produce advanced UAV systems. The agreement came as defense companies scramble to respond to the surge in European military spending.
The companies formalized their agreement on March 6 with the signing of a Memorandum of Understanding (MoU) at Leonardo’s headquarters in Rome, marking a significant step in defense cooperation between Turkiye and Italy.
Leonardo-Baykar joint venture focused on UAV Innovation
Under the terms of the agreement, the two companies will combine their expertise to design, develop, produce, and maintain unmanned systems. The partnership aims to capitalize on Baykar’s leadership in unmanned combat aerial vehicles (UCAVs) and artificial intelligence (AI) technologies, alongside Leonardo’s experience in aerospace systems, mission payloads, and certification.
“With Baykar, we are creating a new player in unmanned technologies” that will address the growing defense needs in Europe, said Roberto Cingolani, CEO of Leonardo. “This partnership reflects the necessity of technological cooperation in an era where AI, unmanned systems, and space technologies are becoming central to modern defense strategies.”
“Today, we are signing a new international alliance that marks a significant leap forward in unmanned systems, opening up new market opportunities, particularly in Europe. The defense industry is facing unprecedented challenges, such as unmanned systems, artificial intelligence, sixth-generation fighters, cybersecurity, and space.” Cingolani also highlighted the companies’ long-standing relationship, noting that they had worked together commercially for the past four or five years, with Leonardo sensors already being installed on Baykar UAVs.
🎙️#Leonardo CEO and GM Roberto Cingolani: With @BaykarTech we are creating a new reference player in #unmanned technologies, which will play an increasingly central role in the future of Defense. pic.twitter.com/rtA41minJX
— Leonardo (@Leonardo_live) March 6, 2025
Growing demand for advanced UAVs in Europe
The partnership comes at a time when European nations are urgently seeking advanced UAVs, particularly armed drones, surveillance systems, and long-range strike capabilities. Industry analysts project that the European market for unmanned systems will exceed $100 billion over the next decade. This rising demand is being driven by security concerns, including territorial defense, border security, and counter-terrorism operations, all of which are accelerating the adoption of UAV technology.
The collaboration between Baykar and Leonardo is expected to address this gap, with the companies bringing together a wide range of UAV airframes and payload technologies to meet diverse defense needs.
As Cingolani outlined, Leonardo’s payload systems, which include sensors, electronics, and radars, are key to making UAV platforms multi-operational and intelligent. “If we combine Leonardo’s payloads with the wide portfolio of airframes produced by Baykar, we can cover essentially all kinds of needs and missions for defense,” he said. “If we combine Leonardo payloads … with the wide portfolio of airframes designed and produced by Baykar, which range from very small, very low cost, to something the size of an unmanned aircraft fighter … we can cover essentially all kinds of needs and missions that might be useful for defense.”
With Baykar’s extensive experience in producing unmanned combat aerial vehicles (UCAVs) and Leonardo’s expertise in mission systems, payloads, and aerospace certification, the partnership is poised to drive innovation in the unmanned technologies sector. The venture is also set to extend into space-related technologies, a rapidly growing area within defense.
For Europe, the partnership between Leonardo and Baykar could be a turning point in efforts to develop a robust domestic drone industry. Historically, European nations have struggled to match the capabilities of U.S. and Israeli drone manufacturers, which dominate the global market. By collaborating with a proven leader in UAV technology, Leonardo hopes to reduce Europe’s reliance on non-European suppliers.
Expanding defense ties between Turkey and Italy
This joint venture also highlights the growing defense ties between Italy and Turkey, both NATO members. Although Italy has made strides in aerospace technology, it has faced challenges in developing a competitive domestic UAV industry. The partnership with Baykar allows Italy to tap into Baykar’s established reputation in unmanned aviation, which could fill critical gaps in Europe’s drone defense capabilities.
This partnership will leverage Baykar’s industry-leading unmanned platforms and Leonardo’s expertise in mission systems, payload design, and related aerospace certification in Europe. The success of this partnership will depend on the companies’ ability to meet the technological and regulatory demands of European defense authorities.
Baykar, the global leader in armed UAV exports, is best known for its TB2 and Akinci drones, which have seen operational success in conflicts across the Middle East and North Africa. Selçuk Bayraktar, Chairman and CTO of Baykar, emphasized the importance of this collaboration in shaping the future of unmanned aviation. “Baykar has always pushed the boundaries of innovation in unmanned aviation. This strategic partnership between Leonardo and Baykar will combine ethical AI-driven technologies together to develop next-generation solutions that will define the future of unmanned aerial systems,” said Bayraktar.
“Leonardo’s globally renowned capability in C4I systems and its immense AI technology backbone make this collaboration even more impactful … Together, this synergy will bring ultimate AI-driven air supremacy for the future,” he added.
Both companies, currently engaged in the development and production of UAVs, electronic systems, payloads, C4I (Command, Control, Communications, Computers, and Intelligence), Artificial Intelligence, integrated mission systems, space equipment, and services, will ensure interoperability within multi-domain ecosystems.
In addition to their focus on UAVs, the partnership will also extend into space-related technologies. Both Leonardo and Baykar have been involved in various space initiatives, and they plan to integrate their expertise in this field as part of the joint venture. The two companies hope to position themselves as leaders not only in unmanned systems but also in multi-domain technologies that span air, land, sea, and space.
Key Facilities and joint venture sites
The joint venture will leverage multiple Leonardo facilities in Italy. Key sites include:
- Ronchi dei Legionari, which specializes in unmanned technologies,
- Torino and Roma Tiburtina, focusing on production and integrated multi-domain technologies,
- Nerviano, which will focus on space sector collaborations.
These locations will play pivotal roles in the production and development of UAVs and associated technologies.
As unmanned aerial systems become an increasingly vital component of modern defense, partnerships like the one between Leonardo and Baykar will play an important role in shaping the future of military technology. The growing reliance on UAVs across the globe presents both opportunities and challenges for manufacturers, who must balance innovation with the demands of national security.