EU Taps Ukraine’s Growing Drone Industry for New Defense Collaboration

by Belinda

Ukraine’s fast-growing drone industry will officially join an EU-funded defense project for the first time, the European Commission announced today.

As part of the European Defence Fund (EDF), Ukraine will work with nine other European defense firms to develop a fleet of advanced small drones powered by artificial intelligence. These drones will be designed to operate across air, land, and sea environments and will use innovative propulsion systems, including hydrogen fuel and hybrid engines.

This marks a milestone for Ukraine’s defense sector, which has rapidly expanded amid Russia’s full-scale invasion. Facing constant attacks, Kyiv leaned heavily on drone technology—both for surveillance and strikes—significantly altering battlefield tactics. The effort has paid off. Ukraine now produces around 4 million drones annually, and local startups have made major strides in drone innovation.

More Than Just Drones

The EU is investing €910 million this year through the EDF across 17 defense areas. Of that, €360 million will fund 39 research projects, while €539 million will go toward 23 capability development projects.

In addition to drones, the EDF will support the development of next-generation helicopters, advanced missile systems, new energy sources, and water purification technology.

Launched in 2021, the European Defence Fund was designed to help EU member states reduce their reliance on foreign weapons systems, particularly from countries like the United States. It supports joint defense projects that strengthen Europe’s strategic autonomy in military technology.

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