UK Defence News Round-up: Week 18 (2025)

MOD Targets 198K Army Applications for 2025–26

The Ministry of Defence has set a target of 198,000 applications for the British Army across all entry streams in the 2025–26 financial year, aiming to tackle ongoing recruitment and retention issues. Defence Minister Luke Pollard confirmed the goal in a written statement on 30 April, highlighting the government’s efforts to stabilise the Armed Forces’ recruitment pipeline since July 2024. While the Royal Navy and RAF don’t set formal application targets, they continue to monitor recruitment through performance metrics and assessment attendance. The move comes amid growing concerns over Army personnel shortfalls.

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Credit: DSEI UK

MoD’s FCI Accelerates Defence Tech and SME Involvement

As the UK ramps up defence spending to 2.5% of GDP by 2027, the Ministry of Defence’s Future Capability Innovation (FCI) is playing a key role in fast-tracking novel technologies-especially from SMEs-into military use. Head of FCI James Gavin outlined its mission to accelerate adoption of uncrewed systems, such as drones and one-way strike effectors, with over £500m allocated for Ukraine in 2024 and potentially more to come.

FCI enables rapid procurement through commercial frameworks and competitions, targeting agile, sovereign solutions. Recent and upcoming initiatives include a first-person view drone challenge, and a vehicle-mounted mortar system competition expected in mid-2025. The new ‘off-the-shelf bake-off’ model allows for faster evaluation and deployment of high-readiness equipment, though traditional phased funding remains for emerging SME tech.

FCI also supports Taskforce Hirst, helping SMEs provide critical support to Ukraine, and aims to strengthen the UK’s defence supply chain while embracing agile, accelerated acquisition.

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Credit: ROYAL AIR FORCE

RAF’s Storm Shroud Drone: Combat-Tested, Adaptable, and Resilient

The RAF’s Storm Shroud drone, built on the AR3 airframe, draws heavily from over 10,000 combat hours in Ukraine, ensuring high survivability for deep, high-risk missions. Developed with input from the RAF, DE&S, and industry partners like Leonardo, Storm Shroud integrates the Brite Storm electronic warfare payload, designed to jam and deceive enemy air defences. With its modular design, it can be adapted for various tasks, including VTOL operations.

The drone’s agile development strategy focuses on creating a flexible, attractable system that evolves through continuous updates rather than traditional full operating capability milestones. While not a replacement for advanced platforms like Typhoons or F-35s, Storm Shroud complements them by offering persistent, adaptive disruption in contested environments, proving its resilience in real combat conditions.

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Credit: MOD

MoD Supports UK Weapons Manufacturing

The UK Ministry of Defence (MoD) has reaffirmed its commitment to boosting domestic weapons production under the Defence Industrial Strategy, but did not specify locations for new facilities. Defence Minister Maria Eagle emphasized the goal of aligning national security with economic growth, focusing on increasing onshore capabilities and strengthening industry collaboration. Recent investments include a £1.6 billion deal to increase missile production at Thales’s Belfast plant and a major expansion of BAE Systems’ artillery production in South Wales.

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Credit: MOD

MOD Opens £98.5M Defence Storage Facility in Cumbria

The UK Ministry of Defence has completed a new £98.5 million state-of-the-art storage facility in Longtown, Cumbria. Managed by Defence Equipment & Support (DE&S) and operated by Team Leidos, the 76,000m² Longtown Defence Storage Facility will house mission-critical inventory for the UK Armed Forces, boosting readiness and supply chain efficiency.

Built by McLaughlin & Harvey, the project supported over 450 jobs and will create 25 permanent roles. Designed for sustainability, the facility includes green technologies, upgraded rail access, and contributes to the MOD’s Net Zero goals. An official opening is planned later this year.

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Credit: PLEXSYS UK LTD

MOD Awards £4.5M E-7 Trainer Support Contract to Plexsys

The Ministry of Defence has awarded Plexsys Interface Products UK Ltd a £4.5 million contract to support the E-7 Mission Crew Trainer at RAF Lossiemouth. The three-year contract, with a potential extension of three more years, ensures uninterrupted synthetic training for the RAF as it transitions to the E-7A Wedgetail aircraft. Plexsys was chosen due to its exclusive access to the trainer’s source code and critical technical data, ensuring seamless maintenance of both hardware and software. This support is crucial for the RAF’s next-generation airborne early warning system.

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Credit: MARSHALL

Marshall Wins Contract to Produce Royal Navy Sonar Modules

Marshall has won a contract from Thales UK to manufacture and support sonar modules for the Royal Navy’s Sonar 2076 and 2087 systems, used on Astute-class submarines and Type 23/26 frigates. Running from 2025 to 2039, the agreement reinforces Marshall’s role in anti-submarine warfare support and strengthens its partnership with Thales. Production will take place at Marshall’s Cambridge facility, with investments in new tooling and testing capabilities.

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Credit: SEA

SEA Wins £8M Thales Contract to Support Royal Navy

SEA has secured a 15-year, £8 million contract with Thales under the Maritime Sensor Enhancement Team (MSET) programme to support the Royal Navy. The contract aims to reduce system obsolescence and boost availability of key assets like sonar, masts, and electronic warfare systems.

SEA will provide maintenance, inspections, and repairs for towed array handling equipment both in the UK and overseas, enhancing mission-readiness and resilience across the fleet. The partnership emphasizes proactive, through-life support to ensure long-term operational effectiveness and cost efficiency.

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Credit: MBDA

MBDA Invests in UK’s Hydra 400 Drone

MBDA has invested in British SME Hybrid Drones Ltd, the maker of the Hydra 400 hybrid heavy-lift UAV, marking one of its first equity investments in a UK startup. The deal strengthens UK defence innovation by enabling continued development of the Hydra 400, capable of carrying varied payloads including cargo, weapon systems, and medevac pods.

The partnership reflects the UK’s defence industrial strategy and supports sovereign capability development. Hydra 400 uses a unique hybrid of electric rotors and jet turbines and can be rapidly deployed from a flatbed truck. The collaboration emerged from the British Army’s Warfighting Experiment, positioning the Hydra UAV as a key player in future defence operations.

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Credit: BAE SYSTEMS

BAE Wins £150.8M USMC Contract for ACV-30 Vehicles

BAE Systems has received a £150.8 million full-rate production contract from the U.S. Marine Corps for 30 ACV-30 vehicles, including spares, support, and test equipment. Featuring a 30mm remote turret system, the ACV-30 offers enhanced firepower while maintaining amphibious mobility.

The contract is part of FRP Lot 5/6, with work to be completed by Q3 2026 in Pennsylvania and South Carolina. BAE is also producing ACV-Personnel, ACV-Command, and ACV-Recovery variants to support diverse Marine Corps operational needs.

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Credit: UKRI

UK, Sweden Join LOFAR Radio Telescope Network

The UK and Sweden have officially joined the Low Frequency Array (LOFAR) European Research Infrastructure Consortium (ERIC) as full members, strengthening European collaboration in cutting-edge radio astronomy. LOFAR, the world’s most sensitive low-frequency radio telescope, now includes eight member countries and operates 52 antenna stations across Europe, including UK and Swedish sites active since 2010 and 2011.

LOFAR enables astronomers to explore the early universe and conduct simultaneous studies via its powerful, multi-beam sensor network. UK membership marks a milestone for the nation’s radio astronomy community, reinforcing long-standing scientific ties and opening new research opportunities. The LOFAR 2.0 upgrade will further expand its capabilities in the coming years.

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Credit: BABCOCK

Babcock Expands Rosyth Shipbuilding Facilities for Type 31

Babcock has received planning approval for a new warehouse at Rosyth to support the construction of the Royal Navy’s Type 31 frigates. The facility, approved by Fife Council, will provide storage for major frigate sections between fabrication stages. The expansion is part of Babcock’s continued investment in Rosyth’s shipbuilding and manufacturing capabilities. As the Type 31 programme progresses, the shipyard is also exploring future opportunities, including potential export orders from countries like Sweden. This infrastructure investment ensures Rosyth’s long-term role in the UK’s maritime industry.

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Credit: TITAN

Titan Gains Key Defence Certifications

Weymouth-based Titan Manufacturing has secured two major certifications, strengthening its position as a trusted UK defence supplier. The company has been approved by JOSCAR, making it a preferred partner for major defence contractors, and has also achieved Cyber Essentials Plus – a top-tier government-backed cybersecurity accreditation.

Director Ryan Hanger said the certifications enhance client confidence, especially amid heightened global defence demand. Already active in land systems projects, Titan reports new client engagements and discussions on six defence-related contracts.

The firm also recently joined ADS Group and Made in Britain, reinforcing its commitment to quality, security, and UK manufacturing excellence.

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Credit: SUBSEA CRAFT

SubSea Craft Unveils MARS USV in 100 Days

SubSea Craft has unveiled its MARS Unmanned Surface Vessel (USV), developed in just 100 days to meet evolving global maritime demands. The versatile platform is designed for autonomy, survivability, and mission flexibility in contested environments. MARS supports a range of missions, including ISR, wingman operations, and payload delivery, with integration for systems like Anduril’s ALTIUS.

Following successful testing with AUKUS partners, MARS is poised to complement allied naval operations, under the AUKUS interoperability framework. The vessel will be showcased at major defence events including SOF Week, DEFEA, and DSEI in 2025.

SubSea Craft aims to lead in modular, digital, and autonomous maritime solutions for future naval needs.

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Credit: DASA

Defence Innovation Loans Open to UK SMEs

The Defence and Security Accelerator (DASA), in partnership with Innovate UK, has reopened applications for Defence Innovation Loans, offering UK SMEs between £100,000 and £1 million at a 7.4% interest rate to help commercialise defence solutions. Targeted at mature innovations (TRL 6+), the loans aim to bridge the gap between development and market readiness. Since launching in 2021, £6 million has been loaned to 8 companies, leading to £16.9 million in private investment and 54 new jobs. Only single UK-registered SMEs are eligible, and applications must demonstrate strong potential impact on UK defence and the economy.

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Credit: ARONDITE

AI Defence Startup Arondite Raises £9M

Arondite, a UK defence tech startup founded by ex-Army officer Will Blyth, has raised £9 million to develop AI software that integrates autonomous systems used by the military. The platform, described as “connective tissue” for defence technologies, enables coordination of multiple devices, with early applications in minefield clearance.

Backed by Index Ventures and other investors, the funding follows a previous £1.78M pre-seed round. Co-founded by former BAE Systems engineer Rob Underhill, Arondite aims to transform how militaries control autonomous assets, aligning with UK defence priorities to invest in advanced technologies like AI and drones.

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Credit: AMIOSEC

Amiosec and Penten Merge to Form Global Cyber Defence Firm

UK-based Amiosec and Australian defence tech company Penten have merged to create PentenAmio, a global provider of sovereign cybersecurity, AI-enabled defence, and electronic warfare technologies. The new entity brings together around 300 security-cleared professionals, generating over £60m in annual revenue and serving national security clients across the UK, Australia, Canada, and other NATO-aligned nations.

PentenAmio’s offerings include the Alto Crypt secure mobility platform and Trap Radio, an AI-powered deception tool for defence training and operations. The firm is positioned to address growing demand for sovereign, secure-by-design communications amid rising geopolitical tensions. Leadership includes co-chairs Matthew Wilson and Adrian Cunningham, with Matt Thomas as UK CEO and Sarah Bailey as CEO in Australia.

Backed by Five V Capital, PentenAmio will pursue strategic partnerships across NATO and Five Eyes countries.

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Credit: EASYJET

easyJet, ATOBA, and World Fuel Partner for SAF Supply

easyJet, ATOBA Energy, and World Fuel Services have signed a Memorandum of Understanding (MoU) to develop a long-term supply of Sustainable Aviation Fuel (SAF) for easyJet’s European and UK operations. The partnership aims to address challenges in the SAF market by managing pricing and supply volatility. ATOBA’s unique aggregation model will support SAF production scaling, while World Fuel ensures seamless logistics and regulatory compliance. The collaboration accelerates the aviation industry’s transition to sustainable fuels and strengthens easyJet’s decarbonisation strategy.

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Credit: MADE SMARTER

Made Smarter Unveils £1M Tech Fund for NW Manufacturers

Made Smarter has launched a £1 million funding round to support digital technology adoption among SME manufacturers in the Northwest of England. The programme offers match-funded grants of up to £20,000 for projects involving AI, robotics, IoT, automation, and additive manufacturing.

Alongside funding, businesses gain access to expert advice, leadership training, digital roadmaps, and student placements. Since 2018, Made Smarter has supported 334 projects, projected to add £242 million to the region’s economy and create 1,300 jobs.

Programme Director Donna Edwards urged manufacturers to embrace digital transformation, calling it vital for future growth and sustainability.

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Credit: VIVO

VIVO Upgrades RAF Waddington Flightline for Red Arrows

VIVO, alongside its supply chain partners, has completed quick flightline improvements at RAF Waddington, home of the Royal Air Force Aerobatic Team (Red Arrows). The project, which took just four days, involved applying new taxiway lines and markings on the Airfield Operating Service used by the Red Arrows pilots.

The work, done while the area remained operational, included hydro-blasting old markings and painting over 1,500 meters of new taxi lines, safety zones, and jet-specific markings. This milestone improves efficiency and safety for the team, ensuring seamless operations at their base.

VIVO’s CEO, Jerry Moloney, praised the team effort, highlighting the strong collaboration between VIVO, RAF Waddington, and the Defence Infrastructure Organisation.

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Credit: KAHOOTZ

Shipley UK and Kahootz Partner to Enhance Bid Management

Kahootz and Shipley UK have formed a strategic partnership to improve opportunity capture and bid management. The collaboration integrates Shipley’s industry-leading methods into the Kahootz platform, providing users with enhanced tools and expert advice to streamline their capture and proposal processes. This partnership aims to help organizations increase success rates while maintaining secure collaboration, trusted by clients like the Ministry of Defence and NHS.

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Credit: DSTL

Dstl Marks 25 Years as OPCW Designated Lab

The Defence Science and Technology Laboratory (Dstl) is celebrating 25 years as a Designated Laboratory for the Organisation for the Prohibition of Chemical Weapons (OPCW). Since 1999, Dstl has maintained this elite status through annual proficiency testing, supporting global chemical weapons investigations and reinforcing UK sovereign capability.

Part of a 30-lab international network, Dstl plays a key role in verifying compliance with the Chemical Weapons Convention. Its experts recently helped design and deliver samples for the OPCW’s 56th proficiency test. The milestone was marked with a special event attended by staff, stakeholders, and OPCW representatives.