Exclusive: Sources Say Kawasaki in Talks to Develop Engine for Taurus Missiles

Japan’s Kawasaki Heavy Industries is in talks to co-develop a new engine for Germany’s Taurus cruise missiles, two sources familiar with the matter told Reuters — a move that could mark another major step in Tokyo’s gradual shift away from decades of postwar pacifism.

According to the sources, the Japanese defense contractor signed a memorandum of understanding (MoU) for the project during a defense exhibition in Tokyo in May. They requested anonymity because of the sensitivity of the discussions.

Kawasaki (7012.T) declined to comment. A spokesperson for European defense group MBDA (AIR.PA, BAES.L, LDOF.MI), which manufactures the missiles, said the company was unable to comment at this stage.

Debate Over Arms Exports

Air-launched missiles have been at the center of public debate in Germany since Chancellor Friedrich Merz said earlier this year that he would not rule out sending weapons to Ukraine to bolster Kyiv’s defense against Russia’s 2022 invasion.

Moscow warned that such a move would make Berlin a direct party to the conflict, given that the missiles have a range of more than 500 kilometers (311 miles).

A Japanese role in the program could complicate matters further, as Tokyo still bans the transfer of weapons to countries engaged in conflict.

However, in recent years, Japan has eased several restrictions on arms exports as part of its broader effort to strengthen its defense industry and move away from the strictly pacifist policies it adopted after World War II.

A co-development framework could provide additional flexibility. For instance, Tokyo revised its rules last year to allow the export of fighter jets co-developed with the U.K. and Italy, and in 2023, it approved the transfer of Patriot missiles made under license in Japan to the United States. Still, any re-export to third countries would require Tokyo’s approval.

Japan’s Acquisition, Technology & Logistics Agency (ATLA), which oversees the nation’s defense industry, declined to comment on specific cases but said it strictly reviews all potential transfers of equipment or technology in line with existing regulations.

Focus on Lighter, More Efficient Engines

Reuters reported last month that the German government plans to seek parliamentary approval by year-end for several defense modernization projects, including upgrades to the Taurus system.

According to media reports, the German military intends to purchase around 600 new Taurus NEO missiles, with deliveries expected to begin in 2029. The missiles are also in service in Spain and South Korea.

It remains unclear whether Kawasaki’s talks are directly linked to the new model, but one source said the Japanese company was chosen because of its expertise in designing lighter, more fuel-efficient engines.

Kawasaki is currently testing a new compact turbofan engine designed to power Japan’s upcoming long-range anti-ship missile.

Williams International, the U.S. company that supplies engines for the current Taurus KEPD 350, did not immediately respond to a request for comment.

Both Japan and Germany have been working in recent years to diversify their defense supply chains, seeking to reduce heavy reliance on the United States.