Military drone factory planned for UK could create thousands of jobs ...Middle East

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The factory could strengthen European defences against Russia but also boost domestic economic growth.

A source in the defence industry said the project would create thousands of jobs if it goes ahead. It could also serve as a shot in the arm for the wider economy, which shrank unexpectedly by 0.1 per cent in January.

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However, the Ministry of Defence (MoD) has already signalled its support for the Californian firm by awarding Anduril a £30m contract on Ukraine’s behalf, ordering attack drones to fight the Russian invasion.

One defence analyst, who asked to remain anonymous, questioned whether the UK will want to spend big sums on the kinds of expensive and highly advanced weapons that Anduril is seeking to specialise in. They said the Ukraine war had shown how prioritising greater numbers of cheaper weapons can be advantageous.

Anduril has agreed a partnership with OpenAI, the makers of ChatGPT, to help develop systems that can detect enemy drones and counter them.

This month Defence Secretary John Healey, right, visited the Washington office of Anduril, founded by Palmer Luckey, left (Photos: UK Government; Getty Images)

Where the factory could be built

The North West of England is another area apparently being examined, where regional mayors have been pleading the Government to fund or support more investment.

It could be the European equivalent of the Arsenal-1 “hyperscale manufacturing facility” that Anduril intends to open in the US state of Ohio next year. It has promised this vast complex, covering 5 million sq ft, will “redefine the scale and speed that autonomous systems and weapons can be produced”.

Anduril’s quirky Trump-supporting founder

Anduril was founded by the American tech entrepreneur Palmer Luckey, creator of the groundbreaking Oculus Rift virtual reality gaming headset, which he later sold to Facebook for $2bn. Palmer Luckey showing off one of Anduril’s drones at its headquarters in California (Photo: Kyle Grillot/Bloomberg via Getty) Luckey, instantly recognisable thanks to his “tech bro” fashion sense, was fired by Facebook in 2016, reportedly after donating $10,000 to a pro-Trump campaign mocking Hillary Clinton.  He launched Anduril Industries the following year. It is named after a sword in Lord of the Rings, and its initials – AI – are no coincidence. It is now valued at $28bn (£22bn). Anduril engineers have tested the Altius-600 for at Predannack Airfield in Cornwall (Photo: Anduril)

UK’s race to build military drones

With the Government increasing its military budget to 2.5 per cent of GDP, Anduril is banking on the UK investing heavily in drone technology for decades to come, once the Strategic Defence Review concludes this year.

The factory would create greater competition for the UK’s established defence “prime”, BAE. It is building uncrewed land vehicles fitted with guns, but is yet to produce any armed aerial drones.

Anduril released images of its Altius drones destroying mock Russian missile launchers last year (Photo: Altius)

“That seems to be Anduril’s selling point. They’re trying to get the speed and flexibility of small startups, but on a larger scale. If they achieve that, it could be highly successful.

A German tech company, Helsing, announced in December that it was investing £350m into UK operations, including a manufacturing facility for its HX-2 strike drone. It plans to make 6,000 of these for Ukraine.

Anduril’s technology

The UK has ordered Altius 600m and Altius 700m drones for Ukraine to use in the Black Sea area. These are known as loitering munitions, which can fly for an extended period of time until they spot a target, which they then crash into, causing their warhead to explode. In tests by the US army at a range in Utah a year ago, the Altius weapons achieved six direct hits in six missions, according to Anduril. It has released footage of the drones being launched from helicopters and ground-based vehicles, and destroying a mock Russian surface-to-air missile launcher. Rivals point out they have not yet been tested in battle. US soldiers training with an Anduril Ghost X drone in Germany last month (Photo: Armin Weigel/AFP)

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Donald Trump’s isolationist criticisms of Nato allies have led to concerns about whether the UK can rely on weapons made by American companies in the event of a war.

But a source said that Anduril is keen for its UK arm to effectively become a “sovereign supplier” for the MoD. It would intend to use British-based designers and supply chains, to create weapons that do not depend on US export licences and would not be at risk of tariffs in a trade war.

@robhastings.bsky.social

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