German drone maker Helsing has enlisted Japanese e-commerce and finance company Rakuten to help finalize an agreement to sell its unmanned systems to Japan’s army, as the country’s Ground Self-Defense Forces test Helsing’s HX-2 strike drone.
Field testing of the HX-2 is scheduled to continue through the end of September, according to Defense News. The trials are taking place as Tokyo increases military spending and seeks to modernize its forces amid growing concern about China’s military activity.
A Helsing spokesperson said the Munich-based company reached an “initial agreement” earlier this year for the Japanese government to use its systems. The company said the arrangement was made possible by a local brokerage partner but did not identify the partner. Rakuten later confirmed that it is assisting Helsing as the German firm works to complete the deal.
The arrangement gives Rakuten a role in helping Helsing work through Japan’s procurement environment. Hideaki Mukai, chief of staff to Rakuten’s chief executive, said the company wants to help startups manage structural obstacles that can make it difficult to enter Japan’s defense industry. Those obstacles include complex procurement systems, communication with government agencies and lengthy procurement cycles.
“Encouraging greater participation for startups in Japan’s defense industry presents an important opportunity to strengthen the country’s defense capabilities,” Mukai said in a statement cited by Defense News. He said Rakuten hoped to connect startups and advanced technologies with the needs of government agencies.
Rakuten is a Tokyo-based conglomerate with businesses spanning e-commerce and finance. Its involvement with Helsing reflects the German company’s effort to work with a Japanese intermediary while pursuing access to the country’s defense market. Rakuten has limited experience in the traditional defense sector, but its commercial position and relationships in Japan provide a channel for foreign technology companies seeking government and industry contacts.
Japan’s defense market has drawn greater interest from overseas suppliers after Tokyo increased defense spending and eased arms-export rules earlier this year. Those policy changes have encouraged foreign defense companies to seek Japanese partners and customers. Helsing’s effort comes as the country examines new technologies for surveillance, strike operations and other military applications.
The HX-2 is part of Helsing’s expansion from software into autonomous military systems. Founded in 2021, the company initially focused on artificial-intelligence software designed to analyze battlefield data. It later expanded into autonomous strike drones, underwater surveillance systems and applications for military aircraft.
Helsing has secured contracts with European governments and defense companies. It also supplies drones for Ukraine through support backed by the German government. The company raised $1.8 billion in a funding round in July, strengthening its position among Europe’s most heavily funded defense technology startups.
The HX-2 trials are the central near-term development in Helsing’s Japan effort. The testing will run through the end of September while the company and Rakuten work toward completing the arrangement described by the two firms. A successful outcome would give Helsing a route into a major defense market and add an autonomous strike system to Japan’s evaluation of emerging military technologies.
For Rakuten, the Helsing arrangement extends the company’s involvement in helping technology startups address Japan’s government procurement system. For Helsing, the partnership offers local support as it seeks to move from an initial agreement and field evaluation toward a completed sale.
The Japan initiative also comes as Helsing seeks to establish itself beyond Europe. Its funding, government contracts and work connected to Ukraine have made it one of the most prominent new defense technology companies in the region. The Japanese effort now places its HX-2 under evaluation by the country’s Ground Self-Defense Forces, with the field-test period set to continue until the end of September.