Weekly News Update: Feb 9, 2024
3 - 9 Feb 2024
Good morning,
This week's news roll-up paints a dynamic picture of innovation and geopolitical maneuvering. Highlights include:
Congress remains broken, unable to pass important legislation to help our allies and secure our borders. Further, their reliance on continuing resolutions (instead of actually passing a budget) is starting to threaten the Pentagon’s modernization efforts and our future force. The Defense Innovation Board has made a recommendation that would stifle industry’s willingness to to support innovation. Russian president Putin has shown that he’s an expert in misconstruing and misrepresenting history, as he sat down with Tucker Carlson for an interview—read, propaganda session. We now have an idea of how much Russia was paying for Iranian drones, as they look to ramp their own domestic production to 10,000 for use as munitions in Ukraine. Wargames have demonstrated that cheaper is better for autonomous systems, although we continue to focus on exquisite solutions while paying nominal lip service to attritability.
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
Lack of approved budget threatens Pentagon’s modernization efforts (DoD)
Senate advanced aid bill for Ukraine, Israel, Taiwan (RT)
…only after the house caves to pressure to kill border deal with aid attached (DN)
Defense Innovation Board recommendation threatens to stifle innovation (DO)
Pentagon scrambles to bolster base security after Jordan attack (MT)
After spending billions, Army cancels Future Attack and Reconnaissance Aircraft program, echoing the cancellation of the Commanche, 20 years ago (DN)
US may cut info-warfare assets as China, Russia expand influence ops (DO)
Air Force wargame reveals cheaper drone wingmen are better (DO)
Infrastructure, data plague Air Force hypersonics program (DS)
Army hunts for explosives to meet increased munitions goals (DN)
Army watercraft strategy in need of update, as the service buys more boats (BD)
Hand-held navigation tool for Army deemed effective against jamming (C4)
Supplier bottlenecks threaten Navy efforts to grow arms stockpiles (DN)
Defense Tech Opportunities
The DoD has extended its SBIR submission window through 14 February! (SAM)
The DoD is scrambling to counter-uncrewed systems in all domains (SAM)
The Navy seeks proposals for $2.7Bn wireless and telecommunications services re-compete (SAM)
NASA is seeking potential partners with expertise in hyperspectral imaging for a potential future CubeSat constellation (SAM)
NASA wants industry to propose studies for its Mars Exploration Program (SAM)
The Air Force Research Lab is requesting information on the effects of high power continuous-wave and possible comparisons to high energy pulsed lasers interacting with various materials and targets to inform future acquisitions (SAM)
The Navy and SOFWERX is seeking demonstrations of wearables (SAM)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
Hack reveals how much Russia paid Iran for Shahed Drones, that Russia may plan to build 10,000 attack drones for use in Ukraine (NW)
Ukrainian president replaces army chief (AP)
Baltic nations prepare their own 600-bunker Maginot Line to deter Russia (BD)
Tucker Carlson sits down with Putin, lobs softballs (AP)
EU member countries push back on Italy’s call for European army (C4)
China, Korea, and Asia
Top US venture firms funded blacklisted Chinese companies, House Committee says (WSJ)
Chinese tech company lashes back at US claims of military ties (AP)
China is investing billions in quantum R&D (BD)
China, Uzbekistan cement regional alliance (TH)
Middle East and Africa
US conducts new airstrikes targeting Yemen’s Houthi rebels (AP)
German air defense frigate Hessen deploys to the Red Sea (DN)
US airstrike kills militant leader involved in Tower 22 attack that killed 3 Americans, Iraq threatens expulsion (TH)
US warns of further retaliation if Iran-backed militias continue attacks (AP)
U.S. Defense Industry News
Defense Innovation Unit’s tech-scaling strategy focuses on partnerships (C4)
Aerovironment’s Switchblade 600 in the running for Replicator mass production (DS)
DIU awards Anduril a contract for large underwater drones (DN)
Boeing delays T-7 plans due to faulty parts (DN)
Boeing, Lockheed win $540M from Australia for helicopters (BD)
Gilat wins new multi-million government contract from unnamed customer (ST)
Lockheed strikes deal in Saudi Arabia for local THAAD parts production (BD)
Lockheed secured a $66M Space Systems Command contract for work on the Mobile User Objective System Service Life Extension Program (ST)
Fortem Technologies partners with INTRA Defense Technologies to offer advanced C-UAS solutions in Saudi Arabia (sUN)
Palantir, Voyager Space team to enhance national security in space (PR)
Persistent Systems wins $5.1M from the Air Force for radios (DN)
Shock Stream Phoenix Ventures awarded $307M Army software development support contract (GC)
Congress advances arms sale bill supported by defense industry (FdT)
The State Department has approved the following transactions:
$1.2Bn sale of blimp-based radars to Poland (BD)
Foreign Defense Industry News
Houthis, Russians wield same Iranian-supplied drones, DIA studies show (DN)
Thales inks $2Bn deal to improve British Royal Navy’s maintenance (DN)
Finnish hyperspectral satellite firm Kuva moves into US market (BD)
France orders $1.2Bn of cannons, vehicles, and helicopters (DN)
French company, Arkeocean, bids to reshape maritime surveillance missions (BD)
Pale Blue awarded up to $27M from Japan for space debris mitigation (PB)
Rheinmetall wins $353.5M to supply trucks to British Army (MW)
Saudi Arabia signs $3.2Bn deal for S. Korean air defense systems (DN)
South Korea, Qatar agree to boost military ties (RT)
Space
Space Force’s ‘Victus Haze’ demo to focus on rapid threat response (C4)
L3Harris demonstrates digital phased array antenna system (SN)
SpaceX responds to allegation that Russia is using Starlink in Ukraine (NW)
Nuclear Power & Weapons
A fusion reaction generated twice the energy used, in first (BBC)
Inert nuclear missile found in US man’s garage (NYT)
Thea Energy, a startup using software to build reliable and inexpensive fusion power plants, raised a $20M Series A led by Prelude Ventures (TC)
AI, Robotics, & other Frontier Tech
The Pentagon may need machines to help stop insider threats (DO)
Sam Altman seeks trillions of dollars to reshape business of chips and AI (WSJ)
Google rebrands Bard AI to Gemini and launches a new app and subscription (CNBC)
Discovery in Wyoming could propel US to be world leader in rare earth mineral resources (Min)
A&D-Focused Finance
Palantir ($PLTR) shares soar after company posts record profit, touts surging AI demand (WSJ)
Rocket Lab ($RKLB) announced it closed $355M in convertible note financing to support heavy investment in Neutron rocket development (BW)
Arlington Capital Partners announces launch of Verus Aerospace, a manufacturing roll-up making complex aerostructure components for the A&D industry (ACP)
BAE Systems buys UK drone maker Malloy Aeronautics in future-combat product push (FT)
German defense manufacturer Renk increased its IPO by ~$54M to sell around $537M worth of shares in its private placement (RT)
Sierra Space eyes IPO after years of prep, but is waiting for better market conditions (PL)
Formlogic, a provider of autonomous precision manufacturing services for space companies, received $20M in funding from Trinity Capital (FN)
Interlune, a stealth startup led by Ex-Blue Origin leaders focused on harvesting resources from the moon, has raised $15.5M in new funding (TC)
Nauticus Robotics, a developer of subsea robots and software, raised $12M in funding (PRN)
Important Reads
Retired Air Force Lt Gen Clint Hinote and Retired Australian Army Maj Gen Mick Ryan outline how uncrewed systems are disrupting the conduct of war and how the United States and its allies have to adopt them to be successful in countering growing threats.
Stephanie Young and Megan McKernan of RAND argue that to strengthen US global leadership, Congress must reform the Pentagon’s budget process.
John Hardie and Bradley Bowman suggest that the US can do more to provide Ukraine with critical one way attack drones.
Bluestone Investor Partners’ Zack Hester encourages Defense Tech firms to prepare for M&A.
Lighter Side
Keep building!
Andrew