Defense- & Dual-Use Technologies Edition

U.S. to own Gaza, get rare earths from Ukraine

Defense and dual-use technologies

Feb 07, 2025

Good morning!

It’s been a wild week. We’re exhausted and don’t want to waste your time pontificating on anything specific. We’ll get back to that soon—don’t worry. For now, though, let’s just get into the news.

News Headlines

Secretary of Defense Pete Hegseth hosted a town hall with members of the Pentagon (DH)
Alleged Chinese spies arrested in the Philippines on espionage charges (NI)
China restricts metal exports in response to U.S. tariffs (UT)
China's retaliatory tariffs on crude likely to push U.S. exports lower in 2025 (RT)
U.S., Philippine fighter jets patrol disputed South China Sea shoal (AP)
Panama officially withdraws from China’s Belt and Road Initiative as Panamanian president says there will be no negotiation on canal ownership (AP)
As Musk dismantles USAID, Putin and other autocrats cheer him on (NYT)
White House insists that President has 'not committed' to sending U.S. troops to Gaza (FT)
Ukrainian minerals-for-arms deal complicated by Russian control of key territories (TWZ)
Intelligence Community offering 'deferred resignation' amid federal gov't right-sizing efforts (DO)
U.S. researchers created an open rival to OpenAI's o1, DeepSeek's R1 'reasoning' models for under $50 (TC)
Musk should have vetted his DOGE army; Elez resigns as racist, eugenecist posts surface and intel analysts emphatically states that Coristine wouldn’t pass a background check for clearances (YN)

Pentagon still unsure about lethality of Army's long range hypersonic weapon or 'Dark Eagle' missile (TWZ)
Massive ordnance penetrator bunker buster grows more potent with new 'smart fuse' (TWZ)
Army CIO developing plans to improve continuous 'authority to operate' for weapon systems (DS)
AI, advanced tech central to new Marine Corps aviation plan (MT)
F/A-18's infrared search and track system has 'significant reliability problems' (TWZ)
Navy HELIOS laser zaps drone in latest test (TWZ)
U.S.S. Gerald R. Ford was still struggling with its dual band radar prior to deployment (TWZ)
Navy leaders agree: 'Embrace the robots' (AX)

Threat Tech

China tests new Mach-4 capable turbojet engine; could be used on spy planes (IE)
Lawmakers push to ban DeepSeek from U.S. government devices (RT)
DeepSeek coding has the capability to transfer users' data directly to the Chinese government (ABC)
Researchers link DeepSeek to Chinese telecom banned from doing business in U.S. (AP)
Iran inaugurates its first drone-carrier warship (AP)
The biggest breach of U.S. government data is under way (TC)
Russia's modernized nuclear battlecruiser finally powers up its reactors (TWZ)

Foreign Defense Tech

Spain wants to convert its aircraft carrier for drone operations (TWZ)

Defense Industry

Boom Supersonic broke the sound barrier with its XB-1, becoming the first supersonic civilian aircraft since the Concorde (NPR)
Supernova wins contract to 3D print military-grade energetics (DN)
U.S. approves potential sale of Lockheed, Northrop systems to Egypt (RT)
Ethics experts raise concerns surrounding Musk's dual role as defense CEO, federal employee (DO)

Autonomous Systems

Dufour flies first-ever hybrid-electric autonomous tilt-wing aircraft (AW)
Canadia firm develops world's first ballon-launched high-altitude drone (TDP)

Finance & Deal Flow

Funds

Cherry Ventures raises $500M early stage to back Europe's first trillion-dollar company (TC)

VC

X-energy, a startup developing advanced nuclear reactor and fuel technology, raised a $700M Series C-1 led by Amazon, Citadel's Ken Griffin, and Ares (BW)

Helion raises $425M to help build a fusion reactor for Microsoft (TC)
Hidden Level raised $65M in Series C funding led by DFJ Growth for its drone detection technology; the round came 6 months after a previously undisclosed $35M Series B (CB)
Urban Sky raised a $30M Series B led by Altos Ventures to provide stratospheric balloon-based IR imaging capabilities (SN)
SAEKI raised a $6.7M seed round led by Lightbird to develop its manufacturing tech for large, complex parts using advanced 3D printing and precision machining (TFN)
Astral Systems, a compact nuclear fusion reactor startup, raised a $5.6M seed round led by SpeedInvest and Playfair (EUS)
Trace.Space raised a $4M seed round led by Cherry Ventures to build AI-powered software that helps engineers in aerospace & defense and automotive industries manage and track product requirements more efficiently (TC)

PE / M&A / Exits / Other

Affiliates of Warburg Pincus and Berkshire Partners agreed to acquire TRIUMPH, a PA-based aerospace and defense system spare parts provider, in an all-cash transaction valued at $3B (PRN)
Space and defense firm Karman is seeking to raise $421M at a $2.6B valuation in a U.S. IPO (PRN)
Behrman Capital portfolio company The Thermal Group acquired Applied Composite Technology Aerospace, a UT-based A&D manufacturing company for an undisclosed amount (CB)
Canadian shipyard Davie in talks to buy U.S. shipbuilder amid trade war talk (DN)
Honeywell to divide business into three parts, separating aerospace unit (BD)

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Exciting Opportunities

AFRL is looking for sUAS to enable comparative analysis. Systems must be currently in use with the Air Force (SAM)
JPEO A&A is seeking vendors that can make up to ten 155mm cannon tubes per month within 36 months (SAM)
DARPA’s Adaptive Solutions Office (ASO) and Aerospace Projects Office (APO) have issued a combined office-wide BAA covering technologies from seeking / tracking targets in battlefield conditions to network sensing to modeling and simulations to advanced turbine engines for jets (SAM)