Two German DefenceTech companies have deepened their Ukraine operations during Chancellor Friedrich Merz's weekend visit to Kyiv. Munich-based Quantum Systems will have several tens of thousands of interceptor drones financed by Germany under its winter 2026/2027 military assistance package, manufactured in Ukraine. Meanwhile, ARX Robotics has expanded its relationship with Ukrainian company Roboneers into a strategic partnership for developing unmanned ground systems. The agreements reflect a growing trend of combining German capital with Ukrainian engineering and manufacturing. Germany's DefenceTech sector has attracted over €1.2 billion in disclosed funding recently. Quantum Systems raised €1 billion in July, whilst ARX Robotics completed a €42 million Series A in 2025. Both companies are establishing joint production facilities in Ukraine, with Quantum Systems already employing 80 people locally.

German company ARX Robotics and Ukraine's Roboneers have formed ARX Industries, a joint venture to mass-produce unmanned ground vehicles. The partnership will manufacture the battle-tested Rys Pro UGV across facilities in Germany and Ukraine, supporting Ukraine's target of supplying 50,000 UGVs to its military in 2026. ARX Industries aims to produce thousands of Rys Pro units in its first year, scaling to tens of thousands annually. The vehicles will handle casualty evacuation, frontline logistics, mining operations and combat roles. The joint venture integrates frontline feedback directly into production cycles. Supported by Ukrainian and German governments under the Build with Ukraine initiative, the partnership strengthens European defence manufacturing capacity whilst delivering critical equipment to Ukrainian forces.