Introduction

Italy has granted conditional approval for the Leonardo–Baykar drone joint venture, allowing the Italian defense group and Turkish drone manufacturer to move forward with plans to develop and produce unmanned aerial systems for European and international markets.

The approval, announced on June 17, follows a government review under Italy’s strategic investment screening framework. While the deal has been cleared, Rome has imposed conditions aimed at protecting sensitive defense technologies and ensuring exports remain aligned with national and allied security interests.

Main News Details

The joint venture will be equally owned by Leonardo and Baykar and will operate through a new company, LBA Systems, based in Italy.

Leonardo is one of Europe’s largest aerospace and defense companies, while Baykar has become a major global supplier of unmanned aerial vehicles, exporting its drone platforms to numerous countries.

Italy approved the partnership through its “golden power” mechanism, which allows the government to review and place conditions on investments involving strategic sectors such as defense and aerospace.

Under the approval terms, drones developed through the Leonardo–Baykar drone joint venture may be exported only to countries considered politically aligned with Europe and NATO. The government has also introduced safeguards covering the protection and transfer of sensitive technologies involved in the program.

The partnership was first announced in 2025 and is designed to combine Baykar’s drone manufacturing expertise with Leonardo’s capabilities in sensors, electronics, mission systems, and aerospace integration.

The companies have stated that LBA Systems will focus on the design, production, maintenance, and support of unmanned systems, with industrial activities expected across multiple facilities in Italy.

Why It Matters

The approval reflects Europe’s growing focus on strengthening domestic drone capabilities as demand for advanced unmanned systems continues to increase.

For Leonardo, the partnership provides access to Baykar’s established drone platforms and production experience. For Baykar, it creates a stronger route into the European defense market through cooperation with a leading European aerospace company.

The conditions attached to the approval also demonstrate how European governments are seeking to balance defense-sector cooperation with oversight of critical technologies and exports.

Conclusion

Italy’s approval of the Leonardo–Baykar drone joint venture clears a major regulatory hurdle for one of Europe’s most significant drone partnerships. By allowing the project to proceed under specific safeguards, the Italian government aims to support industrial cooperation while protecting national security interests.