Weekly News Update: Aug 23, 2024
17 - 23 Aug 2024
Good morning,
Hadrian is joining Anduril, doubling down on centralized, vertically integrated defense manufacturing. This comes as the Defense Production Act has become a proxy fight between the Pentagon and Congress over visions of how to best build and maintain our forces for future fights.
Ukraine is continuing its push into Kursk oblast, Russia, while Russian force continue to make slow gains in Eastern Ukraine. China, whose nuclear stockpiles are growing faster than anybody else, is outraged that the US has a new nuclear strategy in case we must face Russian, Chinese, and N. Korean nukes all at once.
Boeing’s clown show continues, with its astronauts equipped with spacesuits that are incompatible with SpaceX systems, closing a door on that recovery plan.
The Defense Tech sector may have jumped past light speed, right to Ludicrous Speed (Go!). This is underscored by one of the 25 largest seed rounds in history, Defcon AI’s $44M raise from Bessemer and others.
Let’s dive in to these and more of this week’s issues surrounding aerospace and defense technology.
Weekly News Round Up
Military
U.S. Defense modernization and innovation
The Defense Production Act has become a proxy war for how to rebuild the Defense Industrial Base (DN)
Pentagon unveils new biodefense-focused supercomputer (DO)
FDA paves way for wider military use of freeze-dried blood plasma (TP)
CENTCOM is using the Army’s Maven Smart System allowing them to probe 1000 targets per hour and solve logistics problems (AT)
Army feeling ‘lukewarm’ about radio as-a-service pilot, PEO C3T says (BD)
Signal battalions to be rebuilt for modern combat, Army says (MT)
Army tweaking major software effort to be more commercial friendly (DN)
Aircraft carrier USS George Bush gets first-ever Stingray drone control room (NT)
Defense Tech Opportunities
Air Force preparing to buy new long-endurance drones for Task Force 99 in Middle East (SAM)
Army queries industry to inform TITAN system production (SAM)
The Marines are seeking AI for force protection for the detection, identification, and tracking of targets (SAM)
Office of Strategic Capital is seeking information from companies and trade associations regarding strategic capital needs for industries related to the Covered Technology Categories to inform the design and implementation of the DoD Loan Program. (FR)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
A major US defense investor may have links to sanctioned Russian oligarchs (FBS)
Trump anxiety spurs investment in European defense startups (RT)
Kursk was the site of a massive WWII tank battle – now it’s at the heart of Ukraine’s counterattack (TC)
A German sense of humor: frigate sails down the Thames, blasting Darth Vader’s theme (AT)
China, Korea, and Asia
US Air Force eyes missile defense for dispersed bases in China fight (DN)
Indian companies may be exporting dual-use tech to Russia; the US is asking them not to do so (TIE)
Thousands flee after Myanmar rebels use drones to bomb Rohingya villagers (TG)
Australia conducts first maintenance of US nuclear submarine (RT)
Middle East and Africa
Iranian military official hints strike on Israel may be delayed (NYT)
Libya’s instability will worsen further without a unified government and elections, UN envoy says (AP)
U.S. Defense Industry News
Anduril’s Ghost Shark autonomous sub arrives in the US (RCD)
Y-Combinator-backed Ares Industries reveals its small cruise missile, 10x cheaper than traditional cruise missiles (TDP)
In expansion, Austal USA undergoes ‘unique evolution’ beyond a two-trick shipbuilder (BD)
Air Force weighs capabilities of Pivotal’s BlackFly eVTOL (MIL)
Hadrian, like Anduril, wants vertically integrated and centralized manufacturing for defense (BD)
Hydrosat launches first payload to monitor hot-spots on Earth (BD)
Lockheed, Istari partner to demonstrate digital aircraft certification (DN)
Mynaric’s manufacturing woes threaten to delay production of US military satellites (SN)
Northrop finishes round of flight tests on new sensor that can do radar, comms, and EW (ASF)
NATO awards Planet Labs contract for “virtual” constellation of surveillance, intelligence, and reconnaissance space assets (ASF)
US approves the sale of SAFE Archangel patrol boats to Tunisia for $110M (BD)
US Army picks Sierra Nevada for long-range spy plane integration work (DN)
TrustPoint landed $3.8M in SpaceWERX contracts to work toward a GPS alternative tech (SN)
X-Bow hypersonic booster passes preliminary design review (TDP)
US approves $3.5 billion sale of Apache helicopters to South Korea (DN)
US approves possible $100M sale of Javelin missiles to Australia, Pentagon says (RT)
Foreign Defense Industry News
AUKUS ITAR changes not much help for Pillar 2 tech: US Studies Centre experts (BD)
NATO activates first small C-UAS contract with Cobbs as allies target drone proliferation threat (BD)
Aussies investing over $850M in new Kongsberg NSM, JSM plant (BD)
Japan buddies up with US on Patriot missile production (AX)
Space
Defense Science Board calls for greater commercial space tech adoption (DN)
Reliant on Starlink, Army eager for more SATCOM constellation options (DN)
UK launches first military spy satellite from Falcon 9 rocket (BD)
SLS contract extension hints at additional Artemis delays (SN)
Nuclear Power & Weapons
Biden approved secret nuclear strategy refocusing on Chinese threat (NYT)
Russian military drones have been spotted over German nuclear plant (NW)
AI, Robotics, & other Frontier Tech
New Army network leader wants more predictive tools for data (DS)
Air Force eyeing AI, data analytics to help improve readiness levels (DS)
Syracuse University, backed by Micron, to launch no-cost semiconductor program for military families (MIL)
Russian defense plan kicks off separate AI development push (DN)
A&D-Focused Finance
US start-up failures are up 7x since 2019 (FT)
Former Israeli Air Force commander launches Ace Capital Partners, backed by the Key1 Fund and Harel Insurance—to support DefenseTech startups (CT)
Re:Build Manufacturing, a manufacturer of technologically advanced products, raised $120M from General Catalyst (FN)
Military staff workflow platform Onebrief raised a $53M Series B led by Human Capital (BW)
Defcon AI closed a mind-bogglingly large $44M seed round led by Bessemer Venture Partners to solve military logistics (TC)
Asteroid mining startup AstroForgeraised a $40M Series A led by Nova Threshold (FN)
Starpath Robotics accelerates moon water mining plans with $12M in funding co-led by 8VC and Fusion Fund (TC)
LIS Technologies, a startup developing advanced laser technology for isotope separation, primarily for uranium enrichment, raised a $11.9 million seed round led by 28 Ventures Fund (GNW)
Deep Fission, a Berkeley-based startup, placing nuclear microreactors deep underground in boreholes and using existing pressurized water reactor technology to create nuclear energy, raised a $4 million round led by 8VC (FY)
Sierra Space is in talks to acquire Boeing and Lockheed Martin rocket-launching JV United Launch Alliance for $2B-$3B (RT)
Important Reads
Crunchbase examined the state of Defense Tech investing.
Gregory Allen and Doug Berenson explore why the defense industry has become detached from the broader economy.
Lighter Side
Keep building!
Andrew