Frankenburg Technologies

Frankenburg Technologies is an Estonian defence manufacturer founded in 2023 by Kusti Salm, the former permanent secretary of Estonia’s Ministry of Defence. Headquartered in Tallinn, the company operates with a specific mandate to address the asymmetry in modern aerial warfare, where low-cost unmanned aerial systems threaten high-value military assets. Salm’s background in public administration and defence policy informs the firm’s operational philosophy, which prioritizes industrial scalability and cost-efficiency over traditional bespoke defence engineering. The company positions itself as a provider of “guided interceptor missile systems” designed for mass production, aiming to lower the cost-per-intercept by more than tenfold compared to legacy systems.

The firm’s primary product is the Mark I, a short-range guided interceptor missile engineered for integration across land, air, and maritime platforms. Developed from concept to successful live-fire intercept in just 13 months, the Mark I is described by the company as the smallest and lowest-cost guided interceptor ever live-fired. It is built using commercially available components to facilitate high-volume manufacturing. In June 2026, Frankenburg opened a missile assembly site in Riga, Latvia, which it claims is the first affordable mass-production missile factory in the world. This facility supports a broader strategy to establish sovereign production capacity in Europe, with additional manufacturing footprints planned for the United Kingdom and Germany.

Frankenburg has secured strategic partnerships to validate and deploy its technology. In July 2026, the company announced collaborations with BAE Systems and Roxel UK to strengthen the UK’s missile industrial base. Simultaneously, it partnered with Babcock and ACUA Ocean to develop maritime counter-drone air defence systems. A significant demonstration of the Mark I’s capabilities occurred at the Ādaži NATO training area in Latvia, where the missile successfully intercepted a moving Class III unmanned aerial system target during a live-fire exercise. Furthermore, Frankenburg has partnered with Airbus to integrate its missiles with the uncrewed Bird of Prey interceptor. These joint flights, planned to continue through 2026 with live warheads, aim to demonstrate the system’s full operational capabilities to potential international customers.

Financial backing for the company’s expansion has been substantial. In 2026, Frankenburg raised €30 million to stand up multi-site missile production. This capital injection supports the growth of its manufacturing footprint across Europe. The investment aligns with broader Western efforts to bolster regional defence industrial capacity, as highlighted by recent EU, Dutch, and German investments in Estonian defence startups. These funds are directed toward scaling production to meet the demands of modern aerial threats, which require rapid replenishment and high-volume output.

The company’s approach reflects a shift in European defence procurement, moving away from expensive, low-rate production models toward industrial-scale manufacturing akin to consumer electronics. By leveraging commercial supply chains and focusing on affordability, Frankenburg seeks to enable defenders to fire interceptors without the financial constraints that typically limit their use. The firm’s rapid development cycle and early operational demonstrations suggest a growing role in the European counter-drone ecosystem, particularly for nations seeking to protect against asymmetric aerial threats from Russia and other state actors.