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Golden power, all the government restrictions on the Leonardo-Baykar joint venture for drones

The Italian government has exercised the Golden power to give conditional approval to the joint venture between Leonardo and the Turkish company Baykar for the production of next-generation remotely piloted aerial systems. All the details

Green light from Italy for the conditional approval of the joint venture between Leonardo and Baykar for drones.

Yesterday the Council of Ministers gave the go-ahead for the establishment of the joint venture between the Italian defense giant and the Turkish drone company, exercising the special powers provided by the golden power legislation, according to Messaggero. The operation concerns the creation of a new company jointly owned 50% by Leonardo and 50% by Baykar, with the aim of producing next-generation remotely piloted aerial systems.

According to the Roman daily, the urgency of the approval, also considering the imminent deadlines, was supported by the Minister of Defense Guido Crosetto. With this decision, the industrial cooperation between Italy and Turkey in the drone sector takes shape.

The agreement, first announced in March 2025 and structured as a parity partnership, aims to create a joint venture, based in Italy, dedicated to the design, development, production, and maintenance of unmanned aerial systems.

All the details.

CONDITIONS IMPOSED BY THE GOLDEN POWER

The government authorization is accompanied by a series of prescriptions aimed at protecting national strategic interests. Among the imposed conditions, sources familiar with the dossier report, is the obligation to direct international development activities exclusively towards countries considered “aligned” with the policies of the European Union and NATO.

The goal of the prescriptions is to ensure the protection of “national strategic interests” and guarantee the continuity of the supply chain, Il Messaggero specifies. At the same time, Italian intelligence, involved in the examination of the operation during the interministerial meeting on June 11, requested specific measures to protect classified information and technologies that will be transferred to the new company, the daily further details. All technology used in drone construction will be classified. The provisions aim to reduce the risk of “loss of national technological capabilities” and to preserve the Italian industrial and technological heritage in the defense sector.

THE INDUSTRIAL ADVANTAGES OF THE AGREEMENT

The partnership will leverage Baykar’s advanced unmanned platforms, which have demonstrated operational effectiveness in international markets, and Leonardo’s experience in designing mission systems and payloads, as well as related aeronautical certification in Europe, the companies explained a year ago.

The companies – both currently engaged in the development and production of UAV (Unmanned Aerial Vehicle) systems, electronic systems, payloads, C4I (Command, Control, Communications, Computers, and Intelligence), Artificial Intelligence, integrated mission systems, equipment, and space services – will ensure interoperability within multi-domain ecosystems, the statement continues.

For Baykar, this represents an opportunity to access the European market through collaboration with the leading Italian defense and aerospace group. At the same time, the Turkish company will benefit from access to advanced technologies developed by the Italian industry. For Leonardo, the partnership allows it to strengthen its presence in the drone sector and integrate its expertise with that of one of the world’s leading producers in the field.

LEONARDO SITES INVOLVED

The Leonardo sites involved in the activities developed by the Joint Venture will be those in Ronchi dei Legionari, a specialist center in the unmanned sector, Turin and Rome Tiburtina, respectively for production aspects and for the development of integrated multi-domain technologies, and Nerviano for the joint solutions offering in the Space sector.

CONQUERING A POTENTIAL MARKET WORTH 100 BILLION EUROS…

Finally, the operation represents a significant step for the defense sector and Leonardo’s industrial strategy in the unmanned systems sector. Thanks to the agreement with Baykar, the Italian group enters more decisively into a market that the company itself estimates could be worth 100 billion euros over the next decade.

Baykar is today the world’s leading drone exporter and records a turnover exceeding two billion euros. The Turkish company has established itself in recent years as one of the main players in the international market thanks to the widespread use of its unmanned aerial vehicles in numerous countries.

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