"It will only be possible in the medium term for Germany and the EU to achieve autonomy in armaments without relying on American capabilities," Oliver Doerre, CEO of the defence electronics maker, told journalists on Tuesday.

The firm, based in the southern state of Bavaria, provides radars used in Ukraine to defend against Russian airstrikes.

European nations have been unsettled by signs of US President Donald Trump's uncertain commitment to the continent's defence and NATO, and were also shocked after he made overtures to Russia on the Ukraine war.

Responding to the geopolitical turmoil, German lawmakers Tuesday approved a plan to dramatically ramp up defence spending pushed by leader-in-waiting Friedrich Merz while the EU is seeking to mobilise huge sums for the continent to rearm.

But Doerre cautioned that it was "essential to continue our trusted collaboration with the American industry, particularly with Lockheed Martin," in the areas of naval command systems and radar technologies.

He called for defence firms, both in Germany and Europe, to focus more on greater cooperation and less on competing with one another, and for Europe to improve when it comes to procurement of military gear.

Doerre, who served in the Germany military for over 20 years, said there were still "significant deficits in terms of capabilities" in the Germany army, despite a 100-billion-euro special fund set up to boost the armed forces after Russia invaded Ukraine in 2022.

Germany needs an estimated 300 billion to 500 billion euros for investments in equipment, infrastructure and extra personnel, he said.

Doerre said that Hensoldt was "ready" to boost its operations in response to growing demand, noting the company had invested one billion euros in recent years to ramp up production, and had hired 1,000 people alone last year.

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LOCKHEED MARTIN