Weekly News Update: Apr 26, 2024
20 - 26 Apr 2024
Good morning,
I’ve been quiet this week, heads down working on something that I’m hoping to push out next week. Nevertheless, it’s been an exciting week as Congress has finally passed the various aid packages for Ukraine, Israel, and Taiwan, which the president has signed into law. $95Bn will go to aid them. I have to highlight, of course, that the vast majority of that money will be spent in the United States or by the US military.
While we’re talking about Congress, the other excitement from them is that the passed the bill requiring ByteDance to either divest TikTok or face a ban in the United States. For their part, ByteDance has sworn to fight the government, and is preparing lawsuits. If that fails, they will accept the ban, but state that they will not divest.
In the battle of the startups and primes, we saw our startups win big, with Anduril being one of two companies selected to continue the Collaborative Combat Aircraft program (the other being General Atomics). Loar Holdings IPOed and saw shares jump 74%, demonstrating that exits are possible for A&D companies. Defense manufacturing is heating up too, with Nominal taking in $27M in seed and Series A funding.
Now, some bad news. True Anomaly, announced layoffs for 25% of its staff or around 30 people. True Anomaly raised $100M in December and is an awardee on Victus Haze contract, announced earlier this month.
Let’s dive in to these and other issues surrounding aerospace and defense technology.
Weekly News Round Up
Military
U.S. Defense modernization and innovation
Biden says the US is rushing weaponry to Ukraine as he signs a $95 billion war aid measure into law (AP)
Defense Innovation Unit prepares to execute $800 million funding boost (C4)
Laplante: ‘Counter-drone system costs have to come down’ (C4)
Air Force stages dogfights with AI-flown fighter jet (DN)
Army shifts aviation force structure back to tailored brigades (DN)
Army is back on track to triple production of 155mm artillery shells, as it works towards 100k per month (DO)
Army officially deploys two laser counter-drone weapons (Mil)
SECNAV floats idea of co-production with foreign shipyards (BD)
$520 Million in Construction at Norfolk Naval Shipyard Aims to Meet Needs of High-Tech Warships (Mil)
Navy to unveil new ‘structured piloting’ framework for IT modernization (DS)
Defense Tech Opportunities
The Air Force has released a BAA seeking solutions to enable nuclear treaty monitoring, advanced detection technologies to support the counter-proliferation (SAM)
The Air Force is also looking for AI solutions to enable next gen distributed command and control (SAM)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
Russian drones force Ukraine to move American M-1 Tanks off the front line (MT)
US preparing to announce $6B in weapons contracts for Ukraine (Pol)
Turkey could support Dutch PM Rutte as NATO secretary general after visit on Friday: report (TM)
Third man is detained in a major bribery case that involves Russia’s deputy defense minister (AP)
China, Korea, and Asia
China blasts US military aid to Taiwan, saying the island is entering a ‘dangerous situation’ (AP)
China military's biggest shakeup in 9 years adds info, cyber, space units (NK)
China harbors ship tied to North Korea-Russia arms transfers, satellite images show (RT)
US will sanction Chinese banks aiding Russia War effort (WSJ)
China’s military spending is concerning given ‘failing economy’: US admiral (RT)
France and the Philippines to start talks on a `visiting forces agreement’ (AP)
A Chinese ship remains the focus of the investigation into Baltic Sea gas pipeline damaged last year (AP)
Chinese-owner of TikTok, ByteDance, vows to fight new US law forcing sale or face ban of social media app (AP)
TikTok spent $7M on lobbying and ads to combat potential US ban (CNBC)
China’s new H-20 stealth bomber ‘not really’ a concern for Pentagon, says intel official (BD)
3 Germans arrested on suspicion of spying, miltech transfer to China (C4)
Middle East and Africa
Israel planned larger response to Iran, but toned down counterattack to avoid escalation (NYT)
US to pull troops from Chad, Niger as African countries question counter-terrorism role (AP)
Burkina Faso’s army massacred over 200 civilians in a village raid, Human Rights Watch says (AP)
Failed rocket strike launched on US-led coalition forces base in Syria (MT)
U.S. Defense Industry News
Advanced Navigation’s Hydrus backpack-sized UUV explores shipwrecks (RR)
Anduril builds Ghost Shark UUV for Australia, says they can move faster than US Navy (DO)
Air Force selects Anduril, General Atomics to develop Collaborative Combat Aircraft (DN)
BlueHalo wins $24 million Air Force contract for research and analysis of satellite vulnerabilities (SN)
General Atomics pitching new Gray Eagle version for armed scout mission (BD)
Chief of General Dynamics warns of long term impacts of Navy’s decision to only buy one sub in 2025 (BD)
Griffon Aerospace and Textron Systems advance in Army’s tests for Future UAS (DN)
Lockheed to supply Australia with air battle management system (C4)
Lockheed Martin projects potential $1 billion loss on classified program (BD)
Lockheed looks to Spain for production of Patriot components (DN)
Northrop sees F-16 IVEWS, IBCS as ‘multibillion dollar’ international sales drivers (BD)
Navy award Raytheon $344M for better targeting in standard missiles (DN)
RTX moves away from competing as a prime for space contracts (DO)
Saab launches new innovation unit, Skapa, to shape the future of defense (Sb)
Army to begin fielding Textron Bell’s long range assault aircraft in FY31 (DN)
Defense startup True Anomaly lays off around 25%, cancels summer internship (TC)
Foreign Defense Industry News
Airbus, UK agree $152 million deal for 6 H145 ‘overseas’ helicopters (BD)
French missile double punch adds new naval capability for Europe (DN)
India to buy 97 light fighter aircraft from Hindustan Aerospace Limited (DN)
Global interest in Iranian attack drones remains strong (BD)
Poland to spend $2.9Bn on missile equipment from South Korea, US (DN)
South Korean shipbuilder HD Hyundai, Norwegian owned Philly Shipyard ink agreement on construction, MRO (BD)
Sweden should hike military budget to 2.6% of GDP, defence committee says (RT)
Space
Missile Defense Agency’s new long-range radar steps toward full deployment (BD)
Injury rates at SpaceX exceed industry average by 6 times for second year (RT)
Nuclear Power & Weapons
Poland’s president: ‘we’re ready to host NATO nukes’ (TH)
Minot AFB to receive $850 million for nuclear weapons upgrades (AFT)
AI, Robotics, & other Frontier Tech
Army may swap AI bill of materials for simpler ‘baseball cards’ (C4)
Army rethinks its approach to AI-enabled risks via Project Linchpin (DS)
DOD launching fully operational vulnerability disclosure program for defense industrial base (DS)
AI has an urgent power problem (WSJ)
Microsoft launched a lightweight AI model (RT)
Musk’s AI startup X.AI is nearing a deal to raise a $6B round at an $18B valuation with participation from Sequoia Capital and others (BBG)
Cognition Labs, a pre-revenue AI coding startup, raised a $175M round at a $2B valuation led by Founders Fund (TI)
A&D-Focused Finance
Seraphim Space launches second $100M VC fund with 9 investments already under its belt (TC)
Japan to create a 1-trillion-yen fund to bolster space business (AS)
Aerospace and defense parts manufacturer Loar Holdings’ shares climbed 74% in its trading debut after its $308M IPO (BBG)
KKR-backed ship maintenance company HD Hyundai Marine Solution plans to raise ~$540M in what may be South Korea’s biggest IPO in two years (WSJ)
Boeing’s defense unit shows profit, despite $222M loss on KC-46, T-7 (DN)
S&P cut Boeing’s ratings outlook to negative (WSJ)
GE Aerospace shares rose ~8% on a beat-and-raise thanks to strong sales from commercial aircraft engines and services (BBG)
VTG, a national security solutions provider backed by Alvarez & Marsal Capital Partners has acquired Vana Solutions, a digital transformation company (PEH)
Skyports, a startup building takeoff and landing infrastructure for eVTOLs, raised a $109.5M Series C from ACS and Groupe ADP (FN)
Nominal, an end-to-end data analysis solutions for A&D industrial engineering teams, raised $27.5M: a $7.5M seed round led by Lux Capital and a $20M Series A led by General Catalyst (BW)
Radical, a high-altitude solar-powered aircraft maker, raised a $4.5M seed round led by Scout Ventures (FN)
Important Reads
Building our Defense subscriber Emilia Probasco and Sam Bresnick urge tech execs to consider how they’ll respond to a Taiwan crisis.
Senators Jack Reed and Roger Wicker offer a wake-up call about the threat of low-cost, attritable, attack drones.
Lighter Side
Keep building!
Andrew