Ukrainian defence manufacturer Fire Point is developing a new air defence system aimed at intercepting ballistic missiles at a cost below $1 million per strike, positioning it as a lower-cost alternative to existing Western systems, a senior company executive said.

The company, known for producing the Flamingo cruise missile, is in discussions with European firms to launch the system as early as next year, with an initial interception target set for the end of 2027, according to co-founder and chief designer Denys Shtilierman.

The initiative comes as governments expand air defence capabilities amid ongoing conflicts in Ukraine and the Middle East, which have driven demand for missile interception systems. Existing platforms such as the U.S.-made Patriot system have faced supply constraints due to extensive deployment, while Europe’s SAMP/T system remains limited in production.

Shtilierman said current interception costs remain high, noting that systems like Patriot developed by Raytheon Technologies and Lockheed Martin often require multiple missiles per target, each costing several million dollars.

Fire Point’s objective is to significantly reduce these costs through technological adaptation and battlefield experience gained during the war with Russia.Ukraine’s defence sector has expanded rapidly since Russia’s 2022 invasion, with domestic companies leveraging operational experience to develop cost-efficient systems.

Fire Point has emerged as a leading producer of long-range drones used in strikes deep inside Russian territory and is now extending its capabilities into missile and air defence technologies.The company is also advancing development of ballistic missile systems.

Shtilierman said its FP-7 missile, with a range of about 300 kilometres, is nearing initial deployment, while a larger FP-9 missile capable of reaching up to 850 kilometres is entering testing. The latter could potentially place Moscow within operational range.

Missile analyst Fabian Hoffmann of the Norwegian Defence University College said that wider deployment of such systems could strain Russian air defences, although he noted that the timeline for a new interception system by 2027 remained ambitious.

Fire Point is simultaneously seeking regulatory approval for a proposed $760 million investment by a Middle Eastern conglomerate, which would value the company at approximately $2.5 billion. Ukrainian authorities are expected to decide on the deal by October, as all defence-related investments remain subject to government oversight during wartime.

Ukrainian media have identified the prospective investor as Edge Group, although neither the company nor regulators have publicly confirmed the transaction. Shtilierman said the investment could enable expansion into satellite launch capabilities, including plans for a low-orbit satellite network supported by a potential launch facility in the United Arab Emirates.

He said the company has already developed technology for solid rocket boosters and is in preliminary agreements with Western partners, although the project remains at an early stage.Fire Point is also seeking approval to export its drone systems to Gulf countries, where demand has risen amid heightened regional tensions.

The company said it has the capacity to produce up to 2,500 long-range drones per month, with each unit costing around 50,000 euros.

Production of its Flamingo missiles, currently limited to three units per cycle at a cost of about 600,000 euros each, is expected to increase once a new in-house engine enters mass production and a rocket fuel plant in Denmark becomes operational later this year.

Shtilierman said export of missile systems remains more restricted due to regulatory barriers, though interest from international buyers continues to grow as countries seek cost-effective defence solutions.

Taiwan Defence Minister Wellington Koo told parliament that Washington had established a dedicated project team to accelerate stalled programmes and bring deliveries back on schedule.

He said several systems had already begun arriving, while delayed components were being prioritised.A key delay has involved a 2019 order for 66 F-16V fighter jets built by Lockheed Martin, equipped with upgraded avionics and radar to counter advanced aircraft such as China’s Chengdu J-20.

Taiwan’s defence ministry said at the weekend that deliveries of the F-16V jets would begin this year, with production running at full capacity.Washington prioritises TaipeiThe United States has increased its focus on Taiwan within its defence export system.

Michael Miller, director of the Defense Security Cooperation Agency, said last week he had signed a directive in 2023 placing Taiwan at the top of the priority list for arms transfers.

Koo said Washington’s urgency reflects a shared goal of rapidly enhancing Taiwan’s self-defence capabilities, amid what Taipei views as an escalating military threat from Beijing.

The United States is legally bound to provide Taiwan with defensive means under longstanding legislation, though it maintains no formal diplomatic ties with the island. Arms sales remain a consistent point of friction with China, which claims Taiwan as its territory and has repeatedly demanded that such transfers cease.

Taiwan has in recent years voiced concern over repeated delays in U.S. weapons deliveries, even as it relies on Washington as its principal security partner and supplier of advanced military systems.

Taiwan has repeatedly flagged delays in U.S. arms shipments, as it faces mounting military pressure from China, which claims the island as its territory. The United States remains Taiwan’s primary security partner and arms supplier despite the absence of formal diplomatic ties.

The United States approved an $8 billion sale in 2019 involving Lockheed Martin, aimed at expanding Taiwan’s fleet to more than 200 F-16 aircraft. The programme has encountered setbacks, including software-related issues that slowed delivery timelines.

Deputy Defence Minister Hsu Szu-chien, accompanied by Air Force Deputy Chief of Staff Tien Chung-yi, visited the F-16V assembly line in South Carolina earlier this week to inspect the first completed aircraft, the ministry said.

Lockheed Martin has assigned several hundred personnel to the programme, and production is proceeding at full capacity on a two-shift schedule, with no reported bottlenecks in parts supply or manpower, according to Taiwan’s statement.

The F-16V fighter jets represent a new configuration tailored for Taiwan, requiring ongoing test flights to refine avionics and systems performance. The defence ministry said these tests must be conducted carefully before full delivery proceeds.

Taiwan has already upgraded 141 older F-16A/B aircraft to the F-16V standard and has ordered 66 new jets equipped with enhanced radar, weapons systems and avionics designed to counter advanced aircraft such as J-20 fighter jet deployed by China.

Lockheed Martin said it was working closely with the U.S. government to accelerate deliveries and remained committed to supporting Taiwan’s defence requirements.

Berlin’s plan to acquire 15 more U.S.-made F-35 fighter jets strengthens NATO readiness and reflects renewed commitment to European security cooperation.

According to a parliamentary source, Defence Minister Boris Pistorius has signaled his intention to move forward with the new purchase, estimated to cost around €2.5 billion ($2.9 billion). The confidential proposal is expected to be reviewed by Germany’s parliamentary budget committee in the coming weeks.

Germany has already ordered 35 F-35 Lightning II jets as part of its earlier decision to replace its fleet of 85 ageing Tornado aircraft, which have been in service since the 1980s.

The Tornado fleet, used primarily for reconnaissance and tactical strike missions, is scheduled for gradual decommissioning over the next decade.

The F-35s will assume one of the Tornado’s most critical roles — carrying U.S. nuclear weapons stored in Germany under NATO’s nuclear-sharing arrangements.

This makes the acquisition a key component of Berlin’s defense modernization strategy and its ongoing commitment to NATO’s collective security obligations.

Expanding Defense Readiness

The move comes as Germany continues to reshape its defense posture following the Russian invasion of Ukraine and rising geopolitical tensions. In 2022, Chancellor Olaf Scholz pledged a €100 billion special defense fund to upgrade Germany’s military infrastructure, equipment, and capabilities — the country’s largest such investment since World War II.

With the expanded order, Germany’s total F-35 fleet will increase to 50 aircraft, positioning the nation among the leading European operators of the advanced stealth fighter.

The F-35, known for its cutting-edge radar evasion technology, advanced sensors, and interoperability within NATO, is expected to become a cornerstone of allied air defense in the coming decades.

“Germany’s additional F-35 order reflects not only a modernization of its air force but also a reaffirmation of its strategic partnership with the United States and its NATO allies,” said a defense analyst in Berlin. “It sends a clear signal of deterrence and readiness.”

Shift in Policy and Regional Implications

Berlin had previously denied plans to purchase more than 35 F-35s as recently as July. However, the improved fiscal position of the defense budget and ongoing discussions about European security priorities appear to have influenced the government’s decision.

The acquisition is also expected to enhance Germany’s defense industry collaborations. However, it could potentially reignite tensions with France over the Future Combat Air System (FCAS) — a joint Franco-German-Spanish project aimed at developing a next-generation European fighter jet.

While the FCAS program has faced repeated delays and technical disagreements, some defense experts argue that the F-35 expansion should not be seen as competition but as a short- to mid-term measure to address immediate defense needs while the FCAS project matures.

“Berlin’s decision to invest in proven, ready-to-deploy F-35s ensures operational security for the next decade while Europe continues to develop its indigenous capabilities,” a European defense official commented.

Strengthening Transatlantic Ties

The F-35 program also deepens transatlantic defense cooperation, with several NATO countries — including Italy, the UK, the Netherlands, Poland, and Finland — already operating or ordering the aircraft. This growing fleet enhances interoperability among allied forces, allowing joint missions and shared maintenance systems.

Lockheed Martin has welcomed Germany’s growing commitment to the F-35 program, emphasizing the aircraft’s role in maintaining air superiority and collective defense readiness.

Once finalized, the new order will underscore Germany’s transformation into a more proactive defense partner within NATO, moving away from its historically restrained military stance.

The additional F-35s are expected to be delivered by the early 2030s, with the first batch of jets from the initial order already in production. Training of German pilots and maintenance crews is underway in the United States.

Defense Minister Pistorius has stated that these measures aim to ensure “operational readiness and strategic flexibility” for the Bundeswehr, Germany’s armed forces, in the face of evolving security threats.

Germany’s expanded F-35 fleet is likely to play a central role in NATO’s future deterrence strategy, reinforcing the alliance’s presence in Europe and ensuring that Germany remains a key contributor to regional and global stability.