Japan and Germany in talks to co-develop next-gen turbofan for Taurus cruise missiles.

Japanese defense manufacturer Kawasaki Heavy Industries (KHI) is in discussions with Germany to co-develop a next-generation turbofan engine for the Taurus air-launched cruise missile. The move marks a deeper Japan-Europe defense collaboration that could reshape missile propulsion technology across NATO and Indo-Pacific partners.

Reuters reported on October 17, 2025, that Japan’s Kawasaki Heavy Industries has entered preliminary talks with German stakeholders to jointly design and develop a new turbofan engine for the Taurus missile family. A memorandum of understanding was reportedly signed during a major defense exhibition in Tokyo this May, two sources familiar with the matter confirmed. The agreement reflects both nations’ growing emphasis on high-efficiency propulsion systems and the diversification of defense technology supply chains.
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The Taurus KEPD 350 is a long-range, air-launched cruise missile designed for precision strikes against fortified targets from beyond enemy air defenses. (Picture source: Army Recognition Group)

Sources close to the deal state that Japanese Kawasaki’s new small turbofan engine, currently under test for a domestic long-range anti-ship missile project, has been identified as a promising propulsion solution for the upcoming Taurus NEO missile. The Japanese engine reportedly offers weight savings, improved fuel efficiency, and potentially increased range. These features are central to Germany’s goal of fielding an enhanced deep-strike capability independent of U.S.-made systems.

Germany plans to procure approximately 600 of the Taurus NEO missiles, with deliveries scheduled to begin in 2029. The upgraded missile is being prioritized as a key pillar of the Bundeswehr’s long-range precision strike arsenal. Taurus Systems GmbH, a joint venture between MBDA Deutschland and Saab Dynamics, is leading the modernization effort. The propulsion system stands as a critical component in increasing performance thresholds and enabling greater operational flexibility across NATO platforms.

At the center of this industrial and strategic alignment is the Taurus missile itself, a combat-proven, air-launched stand-off weapon engineered for deep penetration and precision strikes against heavily fortified, high-value targets. Officially designated KEPD 350, the missile measures about five meters in length, weighs approximately 1,400 kilograms, and is powered by a turbofan engine. It incorporates stealth shaping, a dual-stage programmable warhead known as the Multi-Effect Warhead (MEW), and advanced guidance systems including GPS, inertial navigation, and terrain-referenced navigation. These features allow the missile to fly at low altitudes and evade detection while maintaining high accuracy.

The Taurus missile’s defining capability lies in its BROACH-style warhead, which utilizes a two-phase detonation mechanism. The first charge penetrates hardened targets such as bunkers or command centers, while the second follows with delayed ignition to destroy internal structures. This makes the system ideal for strategic missions requiring precision and minimized collateral damage. With an operational range exceeding 500 kilometers, the missile allows launch aircraft to strike from outside the range of most enemy air defenses. It is currently integrated with aircraft such as the Eurofighter Typhoon, Panavia Tornado, and South Korea’s F-15K.

The potential inclusion of a Japanese-developed propulsion unit in the next-generation Taurus NEO has significant geopolitical and industrial implications. Tokyo has historically maintained strict limits on defense exports under its postwar constitution. However, recent shifts in security policy have opened the door for greater participation in allied weapons development. Kawasaki’s involvement could mark a turning point, suggesting a more assertive role for Japan in international defense technology ecosystems. Still, Japanese authorities would likely retain veto rights over any third-party transfers involving co-developed components.

For Berlin, this partnership could address a long-standing vulnerability in propulsion independence. The current Taurus KEPD 350 is powered by a variant of the U.S.-made Williams International WR-50 engine. By tapping into Kawasaki's technology, Germany aims to de-risk supply chains and reduce strategic reliance on U.S. systems. At the same time, the cooperation offers a pathway for Germany to accelerate missile modernization while leveraging Japanese engineering strengths in miniaturized, fuel-efficient engines.

The political dimension surrounding Taurus exports remains tense. While Berlin continues to resist calls to supply Taurus missiles to Ukraine, citing concerns over escalation and NATO involvement, the debate is ongoing. Should the missiles be upgraded with Japanese components, Tokyo’s export regulations could complicate any future decision to transfer them to a conflict zone. This could further constrain Germany’s room to maneuver, especially under the scrutiny of the Bundestag and within the context of European defense autonomy.

Time is also a factor. Germany’s defense ministry is expected to submit major procurement programs for parliamentary approval before the end of 2025. The Taurus NEO, with its propulsion upgrade, is among the key projects awaiting funding. The Kawasaki partnership adds urgency and complexity, requiring both governments to clarify legal frameworks, industrial responsibilities, and export safeguards.

From a defense-industrial standpoint, this initiative represents a new model of collaboration. Rather than exporting finished systems, Japan is entering a co-development framework that maintains domestic control while contributing advanced technology. This allows Tokyo to expand its defense footprint without crossing constitutional red lines. For Germany, it means faster access to cutting-edge propulsion for a strategic weapons platform central to its deep-strike doctrine.

Operationally, a Taurus NEO equipped with a next-generation engine could deliver substantial gains. Increased range beyond 600 kilometers, enhanced loiter time, reduced infrared and radar signature, and improved mission flexibility would allow NATO air forces to engage more distant, better-defended targets. Integration on newer platforms such as the F-35A or future European fighter aircraft could further elevate the missile's strategic utility.

For Army Recognition readers, the significance of this cooperation is twofold. First, it underscores how propulsion technology is now a strategic lever in missile system development. Second, it shows how export policy and industrial partnerships are rapidly evolving under geopolitical pressure. The Taurus NEO program sits at the intersection of military necessity, technological innovation, and international diplomacy.

The trajectory of this collaboration will be decisive. Whether it becomes a blueprint for future transnational missile development or a one-off case shaped by political limits, the Kawasaki-Germany engine tie-up is a signal of a shifting global defense landscape. This is no longer just about building better missiles. It is about who controls the engines of escalation, deterrence, and alliance power projection.

Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.