Rheinmetall, HPQ Silicon, DroneShield: Tomorrow's Winners Take Shape at Eurosatory

HPQ Silicon Enters a Billion-Dollar Market

HPQ Silicon announced a major strategic move at Eurosatory 2026. Together with the French propulsion specialist LN Innov and the investment firm Novacium, a memorandum of understanding (MoU) was signed to explore the establishment of a North American platform for drone, robotics, and defence applications. The goal is to integrate high-performance batteries, electric motors, and propulsion systems into a single solution. More than 20 customers have already tested LN Innov's propulsion systems, and over a dozen of them have subsequently placed commercial orders. At the same time, LN Innov is expanding its production capacity to up to 20,000 drone motors per month. This opens up access for HPQ to a dynamically growing billion-dollar market.

Through its stake in Novacium, which has been increased to 36.8%, and its exclusive marketing rights for North America, HPQ is directly involved in battery technologies. These are already being evaluated by French drone manufacturers for future platforms. The backdrop could hardly be more attractive, as artificial intelligence, autonomous systems, data centers, and modern defence technologies are driving up global demand for high-performance energy storage solutions.

Novacium is delivering increasingly impressive technical results. Its GEN4 technology achieved capacities of over 7,000 mAh in industrial 21700 cells. At the same time, energy densities of up to 319.9 Wh/kg and 906.2 Wh/liter were achieved. A new drone battery pack even reached 395 Wh/kg with a capacity of 15,900 mAh. According to the company, this represents a 23 to 36% advantage over many of today's lithium-ion and LiPo systems. The silicon-based anode materials can be integrated into existing lithium-ion production lines, offering a clear scaling advantage.

Commercialization is also gaining momentum. HPQ already has sufficient GEN4 feedstock material for approximately 1.5 million batteries. At the same time, production capacity is being ramped up to an initial 2 metric tons per year, while a 50-metric-ton line is being prepared. In addition, the company has received its first commercial order for GEN4 battery packs from a European drone manufacturer.

In addition to battery materials, HPQ is tapping into other future markets. The company is developing technologies for pyrogenic silica, hydrogen, and energy recovery from waste materials. With a market capitalization of only about CAD 75 million, HPQ combines several future trends across energy storage, defence, hydrogen, and specialty materials into a single high-tech story.

DroneShield Reaches a Milestone in Europe

The threat posed by drones is growing rapidly worldwide. Current conflicts show that unmanned aerial vehicles have long since become a central component of modern warfare. Consequently, the market for drone defence systems is growing rapidly. With its AI-powered solutions for detecting, tracking, and neutralizing drones, DroneShield has established a strong position in this future-oriented market.

A partnership with the Dutch specialty vehicle manufacturer Defenture, unveiled at Eurosatory 2026, is now providing new momentum for growth. Together, the companies aim to develop mobile anti-drone solutions that can be integrated directly into tactical vehicles. This will combine DroneShield's sensor, software, and command capabilities with Defenture's "Mammoth" and "GRF" vehicle platforms.

At the same time, DroneShield has reached another strategically important milestone. For the first time, a counter-UAS system manufactured in Europe has been delivered. The new production is based primarily on a European supply chain and is intended to offer NATO member states and European security agencies greater supply security.

At the same time, DroneShield is benefiting from strong operational performance. In the first quarter of 2026, revenue rose by 121% to approximately AUD 74 million. In addition, the company has more than AUD 200 million in cash and cash equivalents and has reported positive operating cash flow for four consecutive quarters. Orders totaling AUD 171 million for the current year have already been secured.

Rheinmetall: Going Increasingly Digital

Rheinmetall continues to expand its position as one of Europe's leading defence groups. While many investors primarily associate the company with tanks, ammunition, and military vehicles, the Düsseldorf-based group is increasingly evolving into a provider of state-of-the-art defence and reconnaissance technologies. Two new partnerships demonstrate how Rheinmetall is expanding its value chain for future key technologies, thereby tapping into additional growth markets.

Also at the Paris Defense Exhibition, Rheinmetall signed a memorandum of understanding with General Atomics Electromagnetic Systems regarding the potential production of the Vektrex precision munition. The 155-mm projectile is designed to increase the range of conventional artillery systems by two to three times while also enabling the precise engagement of targets even in environments where GPS signals are jammed. Since the ammunition can be integrated into existing NATO artillery systems, there is no need for new infrastructure.

At the same time, the company is advancing the expansion of its capabilities in the field of digital combat operations. Together with the US specialist Vantor, Rheinmetall plans to establish a joint venture in Germany focused on so-called spatial intelligence. This will involve combining satellite imagery, drone data, and other sensor data into a real-time digital situational picture. In the future, the platform is intended to enable armed forces to identify targets more quickly, plan missions more efficiently, and make decisions based on AI-supported analyses.

The solution is to be operated entirely under European control, thereby meeting the growing demand for technological sovereignty. Data from space, air, and ground will be consolidated into a central architecture and made available within just a few minutes of collection.

The developments presented at Eurosatory 2026 illustrate the extent to which the defence industry is currently changing. While HPQ Silicon is expanding its access to innovative battery and propulsion technologies for drones and robotics through its stake in Novacium, DroneShield is benefiting from the global rise in demand for mobile drone defence systems and a stronger European presence. Rheinmetall, in turn, is expanding its business into promising areas such as precision munitions, satellite reconnaissance, and AI-supported combat operations. All three companies are thus targeting markets with significant long-term growth potential, driven by rising defence spending, technological innovation, and the increasing use of autonomous systems.