As the recent war in Ukraine has made abundantly clear, unmanned aerial vehicles, or drones, are firmly established as a key area of modern warfare. Since the Russian invasion in 2022, both sides have made massive technological advances in their drone capabilities in what has essentially been a drone production arms race. The Ukrainian government however has started to take an alternative route in the development and advancement of their tech by forging mutually beneficial relationships with small AI focused defence companies across Europe.

As it stands, Ukraine cannot rely entirely on aid packages from Europe and especially not the US who, under Trump, are taking a much more reserved role in European conflicts. So far, the support for Ukraine from the international community has been limited, costly and dependant on repayment either in natural resources or as the UK government puts it, ‘the extraordinary profits on immobilised Russian sovereign assets’. 

There are certain things which, due to their higher cost, Ukraine must receive from aid deals with foreign governments, such as missile systems and larger manned vehicles. These more expensive items must be produced by larger defence contractors as they have greater access to raw materials and a larger production budget. UAVs however can be produced as effectively by smaller companies which are able and willing to provide the Ukrainian government a better deal financially. Over the last few years a German AI Defence company, Helsing, has been filling an important role in providing affordable drone systems to the Ukrainian military. Four thousand reconnaissance drones designed and manufactured by Helsing are already operational in Ukraine, and a recent deal was struck to provide 6000 of their new HX-2 attack drones. 

The HX-2 attack drones are similar in design to the Russian Lancet drones, produced by Russian aerospace giant ‘ZALA’, but come with a few key advantages and innovations. The HX-2 drones are technologically advanced and are able to avoid signal disruption, a feature which can transform drone capabilities in the Ukrainian battlefield. The engagement range is also far higher, at 100km compared to the Russian counterpart’s 40-60km. Helsing are the developers of an AI software which allows the drones to travel on missions in a ‘swarm’, where many of them can be piloted by one individual, allowing for incredibly destructive capabilities. The key advantage of a company like Helsing, over a larger aerospace company with a wider range of products such as ZALA, is in the significantly lower production cost which Helsing offers. Helsing has plans to increase their output, building ‘Resilience Factories’ across Europe which allow for countries to carry out domestic production, with the first being established in Germany.

The Ukrainian government has clearly spotted some of the advantages in giving smaller defence companies the opportunity to develop new and innovative products. Brave1 is an initiative ran by the Ukrainian government, where investors, engineers, defence companies and military experts are able to meet to address some of the gaps and issues that Ukraine faces on the battlefield. The idea is to fix these issues and fill these gaps as fast as possible, and so far it has been successful. The Ukrainian government has managed to incentivise both smaller and larger technology companies to innovate by offering them a shot at a lucrative government contract. 

Another similar programme aimed at kickstarting innovation in the European defence industry is the Darkstar Coalition. Listed as one of the partners of Brave1, Darkstar is a team of European tech start-up owners and investors who have joined forces to boost European defence. Darkstar has hosted two ‘bootcamps’, where small tech start-ups demonstrate their creations and compete for the winning prize, a cash injection to expand their operations. A third bootcamp will take place in Spring of 2025, with a total of €1.5 million awarded to the two most successful companies. Even companies which do not win the funding will benefit from attending, as they are given the opportunity to carry out field testing, network with other companies, gain technical advice and potentially receive funding externally from other interested attendees. The success of the bootcamps demonstrates the previously underutilised talent and innovative ability in Europe in sectors such as engineering, robotics, AI, and cyber-security. When incentivised and supported, these smaller start-ups can have a real impact on the war in Ukraine and European security more broadly.

It’s not just defence manufacturing companies which are stepping up to meet the changing requirements of the Ukrainian government, AI programming companies such as ‘Swarmer’ are also innovating. ‘Swarmer’ is as it sounds, a company which creates ‘drone swarm’ programmes with huge capabilities in modern warfare. It is also a company which is consistently present at Brave1 tech summits, meeting with investors and Ukrainian military officials. 

As the war enters a new phase, with reduced support from the US and the prospect of limited support from Europe, stretching the Ukrainian defence budget as far is it will go will become even more of a priority. This is where these smaller defence and tech startups will thrive. Whilst giants such as Lockheed Martin, BAE, or Airbus typically fill a majority of the orders during long term conflicts, Ukraine has recognised the power in allowing smaller, newer, more nimble defence technology companies to innovate.