Volkswagen is in discussions to repurpose or sell one of its German manufacturing sites as it explores a potential move into defense-related production, according to multiple reports.

The facility in question is the company’s Osnabrück plant, a 4.6 million-square-foot site employing roughly 2,300 workers. The factory, which began vehicle production in 2011, is expected to conclude manufacturing of the T-Roc Cabriolet by 2027, prompting the company to evaluate its long-term use.

Volkswagen has spent months considering options for the site, including a possible transition to defense manufacturing. Earlier discussions involved German defense contractor Rheinmetall, whose CEO said the plant could be suitable for tank production, though no agreement was reached.

More recently, the company has held talks with Israel’s state-owned Rafael Advanced Defense Systems about converting the facility into a production site for components used in the Iron Dome missile defense system. The system is widely used to intercept incoming rockets and short-range threats.

Volkswagen CEO Oliver Blume has indicated the company remains in discussions with defense firms as it weighs whether to sell the plant or shift its operations. A final decision has not been announced.

A potential deal could carry significant financial implications, as missile defense systems require high-cost interceptors that are used frequently during periods of conflict. The move would also mark a notable shift for the automaker as it looks to diversify beyond traditional vehicle manufacturing.