Italy Clears Leonardo-Baykar Drone Joint Venture With Export Restrictions
Italy’s Council of Ministers has approved the joint venture between Turkish drone maker Baykar and Italian aerospace and defense group Leonardo to develop and manufacture next-generation unmanned aerial vehicles in Italy. The approval was granted under Italy’s “Golden Power” regulatory framework — which allows the government to impose conditions on investments in strategic sectors — and includes restrictions on where the jointly produced drones can be sold.
Conditions Attached
The Italian government’s clearance comes with binding conditions: drone sales from the new venture must be restricted to countries politically aligned with Europe and NATO, and all technology used in constructing the drones will be classified. The venture, named LBA Systems, is headquartered in Italy and structured as a 50-50 partnership.
What Each Partner Brings
Baykar contributes its engineering expertise in UAV platforms and proven production experience through the Bayraktar family of aircraft. Leonardo brings mission systems integration, payload certification, defense electronics, and access to European defense procurement networks. Together, the venture positions Italy as a UAV manufacturer capable of supplying allied nations at a time when European defense autonomy is a top political priority.
Leonardo estimates the global drone market will be worth €100 billion over the next decade — a figure that explains why the group moved aggressively to secure the partnership despite the political sensitivities involved.
Significance for Turkish Defense Industry
The deal marks a new phase for Baykar: from exporting finished platforms to co-manufacturing with a major European defense prime. It also places Turkish drone technology at the core of a NATO ally’s domestic production base, a development that would have been difficult to imagine before the TB2’s combat record reshaped international perceptions of Turkish UAV capability.
Sources: AGBI; Hurriyet Daily News; Daily Sabah; MarketScreener; The Security Distillery.
