Starting in the first quarter of 2026, the company plans to begin production of electric drone motors at a yet-to-be-disclosed location in Bavaria. According to company founder and CEO Stefan Thumann, who confirmed the plans to Bayerischer Rundfunk, each production line will be capable of manufacturing up to one million motors annually, primarily for use in military drone systems.
Goal: Achieving Europe’s Technological Independence in the Drone Sector
With this announcement, Donaustahl aims to underscore the urgent need for independence from global supply chains and geopolitical dependencies. The company is especially focused on reducing reliance on China. At present, most electric drone motors used worldwide contain rare earth elements such as neodymium, the extraction and processing of which are largely controlled by China. China also dominates other key components in drone manufacturing, placing European defense companies in a position of dependency.
“It is absolutely essential for Europe to break free from China’s economic stranglehold in order to regain sovereignty,” Thumann told Bayerischer Rundfunk. “We simply must achieve technological independence.” To that end, the company is pursuing alternative engineering approaches in the design of its propulsion units.
Ferrite Magnets Instead of Rare Earths
Donaustahl plans to manufacture drone motors that do not require rare earth elements. Instead, the company is turning to ferrite magnet technology, which relies on materials such as iron oxide and compounds of strontium or barium. These substances are inexpensive, widely available around the globe, and do not pose the same level of geopolitical risk. Avoiding the use of rare earths allows for a more sustainable and politically independent production process.
However, this approach has its trade-offs. Ferrite-based motors are typically larger and heavier than their neodymium-based counterparts. Experts point out that in terms of performance and efficiency, they still lag behind Chinese products—an important factor in military applications, where weight and compactness are crucial. Nevertheless, Donaustahl views this as a long-term strategic investment in advancing European autonomy.
Known for Kamikaze Drones Used in the Ukraine War
Until now, Donaustahl has been primarily recognized for its development and production of so-called kamikaze drones. These small, lightweight, and relatively inexpensive unmanned aerial vehicles are equipped with explosive charges and are designed to self-destruct upon reaching their target. Since the onset of Russia’s invasion of Ukraine, such drones have been used extensively and have proven to be an effective weapon in asymmetric warfare scenarios.
By entering the field of drone motor manufacturing, Donaustahl is expanding its technological portfolio and reinforcing its commitment to reducing reliance on the global defense supply market—especially in the high-tech military sector.
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