A Munich-based German start-up is calling on Europe’s manufacturing sector to play a greater role in strengthening the continent’s defence capabilities in response to the challenges raised by the war in Ukraine. ARX Robotics, a rapidly expanding military technology company, argues that collaboration between defence firms and traditional industrial manufacturers, such as carmakers, is essential to meet rising demand for unmanned systems.
Marc Wietfeld, co-founder of ARX Robotics, emphasized the importance of leveraging existing industrial capacity rather than constructing new factories. He noted that adapting facilities that produce complex equipment like battle tanks can be difficult, but existing manufacturing lines are well-suited for producing simpler unmanned ground vehicles (UGVs). These vehicles are designed to support troops by delivering supplies and evacuating wounded soldiers on the battlefield.
Currently, ARX is preparing to expand production eightfold at a new site near Munich, with plans to reach an annual output of 8,000 vehicles starting next month. Despite this increase, the company expects demand for UGVs to quickly surpass available supply. The German government has been encouraging partnerships between the automotive sector and defence companies to help address the surge in military procurement following Europe's commitment to boost defence budgets.
Some cooperative efforts have begun to emerge, such as Volkswagen’s agreement to allow Israeli defence firm Rafael to manufacture components for the Iron Dome air defence system at its Osnabrück plant. However, officials acknowledge that some traditional defence companies remain hesitant to collaborate, reportedly reluctant to share their market share.
Wietfeld argued that such collaboration is crucial for building resilience in Europe’s defence industry. ARX has already formed partnerships with several established manufacturers, including engine maker Deutz, which has adjusted its production lines to build ARX’s Gereon UGV. The company is also working with automotive supplier Schaeffler and is in negotiations with Bosch.
Founded in 2021 by former soldiers concerned about Europe’s lag in adopting unmanned technologies, ARX Robotics has seen significant growth as the conflict in Ukraine has highlighted the strategic value of unmanned systems. Wietfeld recalls the impact of witnessing a German Leopard 2 tank being destroyed by a relatively inexpensive Russian drone in 2024, an event that underscored the need to rethink traditional concepts of military superiority.
Currently, hundreds of ARX’s Gereon vehicles are deployed in Ukraine. In April, Ukrainian President Volodymyr Zelensky noted a military milestone in which a Russian position was captured exclusively through the use of unmanned ground and air vehicles. Zelensky also stated that Ukraine aims to produce 50,000 UGVs within the year.
In June, ARX announced a joint venture with Ukrainian company Roboneers to manufacture the Rys Pro UGV at an annual scale of tens of thousands. This collaboration is part of a broader initiative to facilitate technology exchange and increase military supplies to Kyiv. ARX has also secured contracts with the British Army and the German Bundeswehr and is developing driverless versions of Mercedes-Benz’s Zetros military truck.
Unlike many defence tech firms, ARX has relied minimally on venture capital, recently raising €31 million at a valuation exceeding €500 million. The company reported revenues in the hundreds of millions of euros and is funding its production expansion independently. Wietfeld also confirmed the opening of a new presence in Poland and denied reports of a takeover bid by a major European defence conglomerate, affirming that “ARX is not for sale.”