Mass production of more than 5,000 long-range combat drones for Ukraine has begun near Munich, German-American defense company Auterion and its Ukrainian joint-venture partner Airlogix said Thursday.

Axar.az reports, citing Handelsblatt News, that the first drones have already been produced, with the German government’s order expected to be completed by mid-2027. The contract is worth around €300 million.

Production will take place at a second site in eastern Germany. The order covers two models, including one with a range of up to 1,500 kilometers.

Auterion is providing the software and operating system, while Airlogix is supplying the hardware. The drones are designed to carry explosives and strike targets, with artificial intelligence being used to help them operate despite electronic countermeasures.

Auterion CEO Lorenz Meier said Germany now had a production line capable of manufacturing affordable precision weapons in large quantities.