Italy approves Leonardo-Baykar drone venture

ROME

Italy’s government has approved a joint venture between Italian defense group Leonardo and Turkish drone maker Baykar to design, develop and produce unmanned aerial systems, according to Italian media reports.

The approval was granted under Italy’s Golden Power rules, which allow the government to review or impose conditions on investments in strategic sectors, including defense and national security.

La Repubblica reported that the cabinet gave the green light to the 50-50 venture between Leonardo and Baykar, subject to several conditions.

The conditions include protecting confidential information and technology used in the venture, the report said.

International development activities under the partnership must also be directed only toward countries aligned with NATO and European Union policies, according to the report.

Il Messaggero also reported that the government approved the creation of the joint venture under its special powers, with conditions aimed at protecting national strategic interests and supply-chain continuity.

The newspaper said Defense Minister Guido Crosetto had supported approval of the project.

The joint company, LBA Systems, was announced in March 2025 and formally established in June 2025.

Leonardo and Baykar have said the company, based in Italy and owned equally by the two firms, will focus on the full cycle of unmanned aerial systems, including design, development, production and maintenance.

The partnership combines Baykar’s unmanned aerial platforms with Leonardo’s experience in mission systems, payloads and certification in Europe.

The venture is part of a wider push by both companies to address growing demand for unmanned systems in the European defense market.