Weekly News Update: Aug 9, 2024
3 - 9 Aug 2024
Good morning,
I’m back! I’ve survived Hurricane Debbie, am recovering from my sickness, and am nearly back to full operating capacity. And just in time. It’s been a doozy of a week.
Ukraine surprised Russia, invading the Kursk region in what is either a turning movement or potential attempt to gain leverage should they be forced to the negotiating table sooner than not.
Shipbuilding is the new front in strategic competition between China and the West. South Korea is leading the charge in investing into this critical capability for the rest of us. Canada wants in on some of that action as well. And we’ve finally launched the last of the Littoral Combat Ships, which we’ve also already begun decommissioning.
The Middle East remains a hotbed of activity, preventing resources from heading to the strategically critical areas of responsibility such as in Europe and the IndoPacific. Will we ever be able to divest our combat footprints there? No. Not likely.
Anduril, unsurprisingly, announced their latest capital raise—a staggering $1.5Bn at a $14Bn valuation. Much of that raise is earmarked for a new, vertically-integrated manufacturing facility. Watch for more commentary on that soon.
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
Pentagon chief technologist argues case for rapid experimentation fund (DN)
DIU begins awarding contracts for second part of Replicator program (DN)
Pentagon No. 2 Hicks defends her Replicator drone initiative after Hill scrutiny (BD)
Bipartisan bill pushes DHS to review terrorist risks from foreign-based mobile apps (NG)
Senator urges more oversight, data tracking on defense OTAs (DS)
Senate appropriators recommend ‘full funding’ for Replicator — and potentially even more money (DS)
Air Force Research Lab eyes space data transport demo in 2026 (DN)
Air Force CCA program still faces cost, bureaucratic hurdles despite positive movement (DS)
Counter-drone missile competition possible in 2025, Army officials say (DN)
Army’s successful hypersonic missile test puts fielding on horizon (DN)
Army’s long-range tiltrotor aircraft moves to next development phase (DN)
AR/VR enabled maintenance arrives at the US Marine Corps (SP)
Defense Tech Opportunities
Air Force seeks secure cloud app to manage flights for govt VIPs (SAM)
DARPA MTO has released an open BAA seeking high-risk, high-reward technologies in microprocessors, microelectromechanical systems, and photonic devices (SAM)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
Battles continue to rage in Russia’s Kursk region as Ukraine continues to push their attack (AP)
Cheap first-person-view drones now hunting larger prey in Ukraine (DN)
China, Korea, and Asia
Allied navies, Chinese warships hold competing drills off the Philippines (USNI)
China looks to its shipyards to beat US in any future war (RT)
Taiwan is readying citizens for a Chinese invasion; it’s not going well (WP)
World's biggest lithium producer is seeking help to compete with China (FT)
Middle East and Africa
Pentagon head defends decision to revoke plea deal for 9/11 defendants (MT)
Netanyahu says arms smuggling from Egypt's Sinai, not Qatar, fueled Hamas (AM)
Islamic State and affiliates gain ground in Africa: UN (AP)
Houthi drone expert among those killed in US strike in Iraq (WP)
The US has shuttered its last base in Niger, leaving counterterrorism efforts in the region in doubt (AP)
After two quiet weeks, Houthis restart attacks against ships in Red Sea (AP)
U.S. Defense Industry News
Warily, US companies eye co-production deals in Ukraine (DO)
Pentagon awards nearly $1B in JWCC task orders (DS)
Anduril announces new facility to streamline autonomous systems, weapons production (DS)
Austal launches the final Littoral Combat Ship as Navy plays catch up on Constellation (BD)
Boeing delivers first MH-139A produced under low-rate contract (FG)
Navy awards $1.3B to General Dynamics’ subsidiary for Virginia Block VI Boats (USNI)
GE Aerospace offset deal anticipates big Polish AH-64E buy (FG)
New XQ-58 Valkyrie variant from Kratos with built-in landing gear to fly soon (TWZ)
After watchdog report, Lockheed focused on Next-Gen Interceptor (AW)
Microsoft, Palantir partner to expand AI offerings to defense and intelligence agencies (NG)
Army awards Raytheon $2 billion to begin Lower-Tier Air and Missile Defense System production (BD)
RTX gets $478M to replenish Germany’s Patriot missiles sent to Ukraine (DN)
Foreign Defense Industry News
US, Australia to expand basing cooperation, finalize PrSM and GMLRS missile production plans (BD)
Canadian shipbuilder Davie wants to invest in US shipyards (ME)
After drone interceptions, Rafael hopes to take Israel’s maritime Iron Dome global (BD)
Space
Boeing Starliner crew could be stranded in space until 2025 (BBC)
NASA may ask SpaceX to step in and help recover the ill-fated crew (AP)
China launches rocket carrying new constellation of satellites (AP)
Nuclear Power & Weapons
South Korean nuclear weapons would fracture US ties, defense chief says (RT)
North Korea marks the delivery of 250 nuclear-capable missile launchers to frontline units (AP)
AI, Robotics, & other Frontier Tech
Wartime need for drones would outstrip US production (DO)
The Army is testing a robotic, explosive mine clearance system (DO)
Bezos' family office is investing exclusively in AI (CNBC)
A&D-Focused Finance
Defense tech startup Anduril raised a $1.5B round at a $14B valuation led by Founders Fund and Sands Capital (TC)
Space-as-a-service startup Muon Space raised a $56.7M Series B led by Activate Capital (TC)
Interstellar Technologies, a Japanese startup, raised ¥3.1B ($21.2M) for rocket and small sat development (SN)
H3X, a startup making electric motors for aerospace and marine applications, raised a $20M Series A led by Infinite Capital (TC)
German spacetech Dcubed raised a $10.4M Series A led by Expansion and BayBG (EU)
GalaxEye raised $6.5M to help launch its first satellite (ET)
Rheinmetall to buy South African engineering firm Resonant Holdings for undisclosed amount, to meet ammo demand (DN)
Forgital Group, an Italian company developing industrial parts for aerospace and other sectors, is in talks to be sold by The Carlyle Group in a deal that could value Forgital at up to €2 billion (BBG)
Brazilian planemaker Embraer agreed to a five-year $1B syndicated credit line (RT)
Important Reads
Defense News has released its annual list of the top 100 defense companies globally. No big surprises in the list, with Lockheed Martin remaining in the top spot.
Building our Defense friend and subscriber Florent Groberg discusses what investments industry and the government need to make to prepare for the future of drone warfare.
Lighter Side
Keep building!
Andrew