3. Quantum Systems: a small factory that kept growing
Who: Quantum Systems, a German maker of reconnaissance drones.
When: the Ukrainian factory opened on 18 April 2024. German Vice Chancellor Robert Habeck and Ukraine's Minister for Strategic Industries Oleksandr Kamyshyn attended.
Structure: its own factory, with a planned investment of up to EUR 6 million over 2 years. The target was about 100 staff and 1,000 aircraft a year.
What worked:
Local engineering. By May 2025, according to the company, all fuselage parts for its Vector aircraft were made in Ukraine. Ukrainian engineers made them stronger and about 250 grams lighter.
Volume. The Ukrainian network now builds 40 to 80 Vector aircraft a month.
The channel units use. Vector has been on Brave1 Market, the online marketplace where Ukrainian units order equipment, since August 2025. Front-line units buy it directly.
Reinvestment. Quantum Systems took a stake in the Ukrainian startup Frontline. It plans 2 more joint ventures under Build with Ukraine, which funds Ukrainian production lines in partner countries.
Where it slowed: public sources show no delays. The company does not publish its Ukrainian revenue.
Since then: the company raised EUR 160 million in May 2025 and was valued at USD 8 billion in July 2026.
What it means for you: a modest, staged investment can lead to local production and direct sales to units.

Quantum Systems Vector in Ukrainian service. Photo: ArmyInform, CC BY 4.0, via Wikimedia Commons.

4. Baykar: a plant under an intergovernmental agreement
Who: Baykar, through its Ukrainian company Avia Ventures, under an intergovernmental agreement between Ukraine and Türkiye.
When: the agreement was signed on 3 February 2022 and ratified by Ukraine's parliament on 13 December 2022. Baykar said construction of the plant in the Kyiv region began in early 2024.
Structure: a plant owned and funded by Baykar. The company put the investment at about USD 100 million across a plant, a service centre and an office.
What works now: no independent report confirms production in Ukraine as of September 2026.
Where it slowed: in October 2024 the plant was reported 80 percent built, with completion planned for August 2025. On 28 August 2025 a russian missile strike damaged the nearly finished plant. Baykar said it would rebuild.
What it means for you: a large, announced plant is a visible target. Budget for physical protection and schedule buffers from the start.

5. Palantir: software inside government systems
Who: Palantir Technologies, a US maker of data analysis software.
When: work with the Ukrainian government started in summer 2022. By December 2022, Palantir had an office in Kyiv.
Structure: memoranda and partnerships with ministries. The Ministry of Digital Transformation signed a memorandum in May 2023. The Ministry of Economy signed a demining partnership agreement in March 2024, after a pilot in 2023.
What it took: Palantir hired Ukrainian engineers to adapt its software and work with officials.
What works now: since January 2026, Ukrainian developers have trained military AI on battlefield data in Brave1 Dataroom, a secure environment built on Palantir software. By June 2026, more than 100 Ukrainian companies had access.
Where it slowed: public sources show no delays.
What it means for you: a software company can enter through partnerships with ministries. At this level, it is a partnership with the state, so the state has to take part. In our view, an integration this deep was unique to its moment, and Ukraine now puts more weight on localisation. If your software is simpler and needs less data, you can try to enter without a ministry partnership. Either way, plan for a local team that adapts the product with Ukrainian users.

What the cases have in common
People in the country. In our research, the companies that reached a lasting position had technical staff in Ukraine.
A clear structure. Each company chose one: a partnership, a joint venture, its own plant or agreements with ministries.
Time to plan. Production and permits take longer than signing.

Frequently asked questions
How long does it take to set up production with a Ukrainian partner?
It depends on the site. Rheinmetall's joint venture started in October 2023, and its repair hub opened in June 2024. A new plant takes longer: Rheinmetall's ammunition plant, contracted in July 2024, had not started construction by January 2026.
Can a foreign company own a factory in Ukraine?
Yes. Quantum Systems opened its own Ukrainian factory in April 2024. Baykar said it began building its own plant in the Kyiv region in early 2024.
What can slow a new plant in Ukraine?
Site selection, permits and physical protection. Rheinmetall changed the site of its ammunition plant, and a russian missile strike damaged Baykar's plant before it opened.
Which structure should a foreign company choose?
It depends on what you want from Ukraine: revenue, a production base or proof for other markets. How to Find and Validate a Ukrainian Defence Manufacturing Partner compares the options.