Pistorius, Reiche Highlight Defense Start-Ups in Germany

More cooperation between defence and civilian industry Pistorius and Reiche Emphasise Role of Start-Ups

2026-03-20 From Detlev Karg 2 min Reading Time

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To make Germany more capable of defence in light of the tense global security situation, the defence industry is to work more closely with civilian companies. This was discussed in Berlin by Federal Minister for Economic Affairs Katherina Reiche and Federal Minister of Defence Boris Pistorius together with industry representatives.

VW Osnabrück: Following Rheinmetall, KNDS is now also interested in at least a partial takeover of the plant. One popular example for the shift from civilian to military production. (Picture: Wiki Commons) — VW Osnabrück: Following Rheinmetall, KNDS is now also interested in at least a partial takeover of the plant. One popular example for the shift from civilian to military production.
(Picture: Wiki Commons)

Germany is not rearming in order to threaten, but to avoid being threatened, Reiche said after the meeting at her ministry. Reiche and Pistorius also pointed to the particular role of start-ups in the defence sector, where a new generation of founders is currently emerging.To enable these start-ups to succeed, new procurement pathways are needed, Pistorius said, referring to the rapid innovation cycles, for example in drone technology. In addition to easier market access, it is important to procure in such a way that stockpiles are not filled with equipment that becomes outdated within three months.

SVI Connect for exchange between industrial sectors.

To foster closer links between civilian and defence companies, Reiche’s ministry launched the SVI Connect platform in December 2025. SVI Connect is a digital matching platform that has enabled targeted exchange between suppliers and companies in the security and defence industry (German: SVI) in Germany since early 2026.The President of the Federation of German Industries (BDI), Peter Leibinger, praised the platform as a “clear signal” from the two ministries that the concept of comprehensive defence has been brought to the centre of attention. Pistorius also emphasised that Germany must move away from strong dependencies and from relying on only a small number of suppliers.

VW plant Osnabrück - an example for the future?

This fits in with a development first reported by the public broadcaster NDR: the defence company KNDS – also a partner of Rheinmetall on many projects – is interested in using at least parts of Volkswagen’s Osnabrück plant. This has not yet been officially confirmed. According to NDR, citing company sources, talks about a possible KNDS stake at Volkswagen in Osnabrück have been under way for some time. The company could potentially lease parts of the former Karmann plant. The possible production of armoured transport vehicles is being considered.

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