German Ministry Rebuffs Security Concerns Over Peter Thiel Backed Stark Defence Drone Contract

German Ministry Rebuffs Security Concerns Over Peter Thiel Backed Stark Defence Drone Contract

The German Defence Ministry says it sees no reason to refuse Stark Defence a contract for the delivery of kamikaze drones. The view is set out in a briefing that was sent to members of the Bundestag on Thursday and reported by the newspapers of the „Redaktionsnetzwerk Deutschland”.

According to the company’s own statements, Peter Thiel, through his investment vehicle Thiel Capital, is a minority shareholder among many others. He holds less than 10 % of the shares, is not a board member and has no special rights that would give him control or influence over the day‑to‑day management of the firm. Nobody, not even Thiel, has access to the company’s technology or a say in research and development decisions. The briefing adds that if Thiel’s stake were to exceed the 10 % threshold, this would trigger an investment‑control mechanism that would allow the federal government to block a larger holding at any time. Confidentiality clauses are in place so that only personnel involved in the project are privy to sensitive information.

Deputy Defence Minister Boris Pistorius, speaking to the German parliament’s Greens on Tuesday during an army visit, said he shares the concerns raised by Members of Parliament about Thiel. He stressed that it is important to determine the extent of Thiel’s influence over Stark Defence. “If he has any operational influence or holds a sizeable minority stake, we are dealing with a very different situation than if he is a one‑digit shareholder with no operational influence” Pistorius explained.

The Budget Committee will decide on the purchase of the kamikaze drones on Wednesday. The contracts with the start‑ups Stark Defence and Helsing are slated to cover initial deliveries worth roughly €540 million, with the possibility of further orders. The largest German weapons maker, Rheinmetall, currently has no contract because the outcomes of its drone tests are deemed “not yet sufficient”.

The ministry states that the purpose of contracting German firms is to keep the national defence industry capable of meeting the Bundeswehr’s needs in a large‑scale conflict against a potent adversary. This approach is intended to reduce the risk that enemy action against a single system could cripple the entire German forces. It also ensures that the brigade in Lithuania will have enough drones in place by early 2027.