The new allocation of funds runs until 2029 and includes a $5.8-billion commitment from Britain, which was announced at a meeting of the Ukraine Defense Contact Group in the Belgian capital of Brussels.
The UDCD is made up of all 32 NATO members, plus 25 other countries and the European Union which all support Ukraine's defense militarily.
"We need a militarily strong Ukraine," Pistorius said Friday.
"Only then can negotiations lead to a just and lasting and peace settlement."
Much of Germany's contribution will go towards air defense, guided missiles and ammunition for Ukraine in its war with Russia.
British Defense Secretary John Healey called 2025 a "critical year" in the conflict between Russia and Ukraine, adding that allies see no end in sight to the war, which has been going on for more than three years.
U.S. President Donald Trump's pledge to negotiate a cease-fire has so far not come to fruition.
Earlier in the week, Ukrainian President Volodymyr Zelensky said his country has evidence of at least 155 Chinese nationals fighting for Russia in the conflict.
Britain and Norway's commitment relates largely to radar and air defense, with Healey calling it a priority Friday.
"In our calculations, 70% to 80% of battlefield casualties are now caused and inflicted by drones," he told reporters.
The money will also help buy drones and anti-tank mines and fun vehicle repairs.
Britain's commitment announced Friday is part of a larger $5.8 billion package announced earlier in the year.
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