US Defense Startups Join Forces with Ukrainian Drone Makers for Battlefield-Ready UAVs
The limitations of American drone technology in modern warfare have led to an unexpected yet strategic partnership between U.S. defense startups and Ukrainian drone manufacturers. Despite heavy investments from venture capital firms, many American startups have struggled to develop effective, cost-efficient small drones that meet the Pentagon’s demands for future conflicts. In contrast, Ukrainian companies, constrained by limited resources, have mastered the art of mass-producing battlefield-proven drones and are now seeking international customers and investors.
This collaboration has caught the attention of the U.S. Department of Defense. Last year, Southern California-based startup CX2 reached an agreement with Ukrainian manufacturers to integrate its advanced software and sensor technology into Ukrainian-made drones. This partnership has already received approval from a branch of the U.S. military and may soon play a key role in arming American forces.
According to CX2 co-founder Nathan Mintz, “No U.S. company is keeping up with Ukraine. You know their technology works. They have the ultimate high-stakes laboratory to battle-proof all this equipment.”
Pentagon’s Increasing Interest in Ukrainian Drones
The U.S. Department of Defense’s growing interest in Ukrainian drones highlights the challenges facing American drone startups and the significant progress Ukraine has made since the Russian invasion. Despite the Pentagon prioritizing small, autonomous drones as essential for future military conflicts, the American defense sector has struggled to produce efficient and affordable solutions.
While the U.S. has the capacity to produce around 100,000 drones annually, Ukraine exceeded expectations by manufacturing over two million drones just last year. Some of these drones are capable of traveling hundreds of miles while carrying explosives and have already been deployed in strikes inside Russia.
Despite ongoing discussions about a potential peace process between the U.S. and Ukraine, Ukrainian drone companies are increasingly focusing on expanding to international markets. Experts suggest that regardless of any diplomatic developments, the U.S. Defense Department will continue to integrate Ukraine’s advanced drone technologies into its military strategy.
Ukraine’s Goal: Becoming the "Drone Capital of the World"
Ukrainian drone manufacturers are pushing for global expansion, as their home market imposes profit restrictions and lacks the financial capacity to purchase the sheer volume of drones they are producing.
“Ukraine has made it pretty clear that they intend on being the drone capital of the planet once this war is over,” said Derek Whitley, co-founder of the startup Vivum, which sells AI software for autonomous systems to the U.S. Department of Defense.
Ukrainian drones are often sold at a fraction of the cost of their American counterparts and have already proven their effectiveness in combat conditions. Unlike many U.S.-made drones, which have faced performance issues in electronic warfare environments, Ukrainian UAVs have demonstrated their ability to operate even when radio and satellite communications are jammed.
U.S.-Ukraine Defense Collaboration Gains Momentum
The Defense Innovation Unit (DIU), a division of the U.S. Department of Defense that sources cutting-edge technology for military use, recently awarded contracts to two U.S.-Ukrainian drone partnerships for the first time. These companies will test their long-range attack drones in Ukraine this spring, competing for potential Pentagon production contracts.
“We want the best, and we see the capabilities we need in Ukraine,” said Trent Emeneker, portfolio manager for autonomous systems at DIU.
Additionally, DIU has, for the first time, added a Ukrainian drone manufacturer, Skyfall, to its list of approved suppliers for the U.S. military. Skyfall, which has completed more than 1.5 million missions in Ukraine and produces thousands of drones daily, may soon supply its bomber drones—integrated with CX2’s software and sensors—to American forces.
CX2 was founded last year by Nathan Mintz, former Andreessen Horowitz investor Porter Smith, and two other co-founders. The company aims to overcome the electronic warfare challenges that have downed many other UAVs by enhancing drones with advanced autonomy and targeting capabilities.
Pittsburgh-based Swan startup is also involved in the initiative, providing autonomy software for one of the Ukrainian attack-drone companies selected for the DIU award. Another Pittsburgh startup, KEF Robotics, has partnered with Ukraine’s Sensorama Lab to create a joint venture called Blue Arrow, which develops software and sensor systems that enable drones to navigate contested airspace with reduced detection risk. The venture has already secured orders from European militaries and is now seeking additional funding from U.S. venture capital firms.
Challenges in Global Drone Expansion
Despite Ukraine’s ambitious plans to lead the global drone industry, several challenges stand in the way. One major obstacle is the Ukrainian government’s restrictions on drone exports. Local drone manufacturers are lobbying for policy changes that would allow them to sell their products abroad, especially to the U.S.
Skyfall is currently seeking special permission from the Ukrainian government to export its bomber drones to the U.S.
“The parts that we cannot sell to Ukraine because they don’t have the money, we can sell to the Americans or Europeans,” said Elena Dushenok, head of growth at Skyfall.
Additionally, Ukrainian drone makers rely heavily on Chinese components. However, to become suppliers for the U.S. Department of Defense, they must secure alternative sources for critical parts.
Despite these challenges, Ukrainian drone startups remain determined to establish global leadership in the UAV industry. Sine.Engineering is already setting up a new European unit outside Ukraine to expand production and sales, including partnerships with U.S. defense manufacturers supplying the Pentagon.
“This year, one of our main priorities is expanding beyond Ukraine,” said Andriy Chulyk, CEO of Sine.Engineering. “We are in a really big war right now, and we need even more advanced technology.”
With this growing cooperation between U.S. startups and Ukrainian manufacturers, the battlefield-tested drones of Ukraine could soon play a significant role in the U.S. military’s future.
