Despite limited defense budgets, Estonia and its Baltic neighbors are making bold investments in modern military technology. One of the most ambitious projects comes from Estonian company Meridein Grupp, a firm known for its advanced drone systems and software.
According to Estonian public broadcaster ERR, Meridein Grupp is preparing to build a large drone manufacturing facility in the Baltic region. The company has already signed multiple cooperation agreements, including with drone makers from Ukraine. While the Ukrainian partners have not been named, their involvement hints at close collaboration—likely drawing from Ukraine’s deep experience using drones in active combat.
Drone factory targets mass production
The new factory will focus on producing different types of drones, including FPV drones—also referred to as “strike” or “bomber” drones—as well as reconnaissance UAVs used for surveillance.
The first batches of drones are expected in early 2026. At full capacity, the facility aims to build up to 2,000 drones per day—about 60,000 per month or 720,000 per year. This high output is possible because many of the drones will be low-cost FPV models, which are highly effective in modern warfare.
Smart defense spending
For Estonia and its regional allies, this project reflects a shift in defense strategy. Instead of spending on expensive equipment like helicopters, Estonia has chosen to invest in cost-efficient and scalable tools such as FPV drones and loitering munitions. These systems are easier to produce, deploy, and adapt—making them ideal for smaller nations with limited resources.
Estonian officials have said that in times of crisis, high-cost platforms could be provided by NATO, allowing the country to focus on technologies that offer the best value and flexibility.
A stronger Baltic-Ukraine tech alliance
The new factory is more than just a production hub. It represents a growing technological and industrial bond between Ukraine and the Baltic states. By working together, these countries are positioning themselves as leaders in the fast-changing world of drone warfare.
This partnership could play a key role in shaping the future of regional security and drone innovation.