GEK Terna Group is about to enter the defence industry through cooperation agreements with three international companies and the establishment of a new subsidiary, seeking a foothold in the production and support of defence systems.
The latest development is an agreement with Shield AI to explore the production of components, assembly and technical support for the X-BAT unmanned combat aircraft in Greece. This follows a binding framework agreement with Germany’s Rheinmetall in June and a memorandum of understanding with Airbus in April. The group has also established a new subsidiary focused on strategic technologies, with initial share capital of €10 million.
The Shield AI partnership could extend beyond Greece to cover the wider Eastern Mediterranean region. The memorandum provides for Greek participation in component manufacturing, the development of training infrastructure and aircraft maintenance.
Shield AI will be responsible for the programme and provide its autonomy software and mission systems. GEK Terna will organise a domestic supplier network involving small and medium-sized enterprises (SMEs) and operate a local office. The terms of the agreement have yet to be finalised.
The two sides are also exploring the creation of a regional training, logistics support and maintenance hub in Greece serving Cyprus, the Balkans and south-eastern Europe. The location of the facilities and the allocation of work remain under negotiation.
The X-BAT
The X-BAT is being developed as a long-range unmanned combat aircraft capable of vertical take-off and landing without a runway. It is designed to have a combat radius of 1,000 nautical miles and carry weapons weighing up to 2,000 pounds. Its planned missions also include electronic warfare, surveillance and reconnaissance.
The aircraft will use a GE Aerospace F110 engine and Shield AI’s Hivemind artificial intelligence software, which is designed to enable operations without satellite navigation or communications. Testing is scheduled for 2026, with production targeted for 2029.
Shield AI has selected Des Moines, Washington, for X-BAT production and Kansas for testing. In Greece, the plans envisage component manufacturing, aircraft assembly and support, although there has been no announcement that the X-BAT will be manufactured entirely in the country.
In June, the Hellenic Army signed an agreement to expand its fleet of Shield AI V-BAT unmanned aircraft for maritime surveillance in the Aegean.
Rheinmetall and Airbus partnerships
In land-based defence systems, GEK Terna has entered into a binding strategic framework agreement with Rheinmetall Landsysteme, following a memorandum of understanding signed in late 2025.
The cooperation covers the development of new tactical ground systems, the upgrading of military equipment and its maintenance throughout its service life. The objectives include establishing production capabilities at Hellenic Army facilities, with the participation of Greek SMEs.
The partnership with Airbus focuses on military satellite communications and the protection of critical infrastructure. The memorandum signed in April provides for the development of integrated solutions in Greece, involving Greek companies and technology transfer. Cooperation is due to begin with the military satellite programme.
The new company
The new subsidiary, GEK Terna Strategic Technologies, operating under the name GT StraTech, was incorporated on October 7, with GEK Terna Urban Services as its sole shareholder. According to information, its establishment is linked to the group’s new defence activities.
Its scope includes investments, technical and scientific consultancy, project management, research and development, and the exploitation of industrial and intellectual property rights. No specific defence project has yet been announced as having been assigned to the subsidiary.
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