Weekly News Update: Oct 20, 2023
14 - 20 Oct 2023
Good morning,
U.S. Congress remains stagnant with no Speaker of the House. Trump-backed Jim Jordan (R-OH) pledges that he won’t give up his attempts to win election to the position, despite two failed votes. It seems neither party really wants him. Iranian backed terrorist groups, including Hamas, Hezbollah, and Houthis, continue attacks against Israel and the United States across the Middle East. Putin continues meeting with other autocrats and wannabe autocrats, drumming up support for his flagging regime. Ukraine finally received the long-awaited ATACMS missiles, and immediately put them to use destroying strategic Russian targets in Ukraine. Ukraine has now allegedly destroyed 5,000 Russian tanks. Russia continues to seek alternative ways to threaten the Alliance and Europe, attacking undersea infrastructure in the Baltic Sea. And new videos release showing Chinese fighter jets harrassing U.S. aircraft.
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
Experts highlight challenges facing Replicator Initiative (ASF)
Defense Innovation Board to study innovation barriers, data economy (C4)
Army overhauls vehicle, weapons maintenance programs (AT)
Army to build electronic warfare training center at Ft. Eisenhower (C4)
Air Force Material Command hits record, spends $10B on small businesses (S&S)
Air Force claims ARRW hypersonic tests provide new insights, but offers details (ASF)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
White House seeks $100B in military aid for Ukraine, Israel (DN)
In effort to thwart Ukrainian commando assaults, Russia deploys combat dolphins (DM)
Ukraine has finally received and used ATACMS missiles (DN)
Hungary’s Orban cozies up to Russia’s Putin, Allies seeth (TG)
Finland unveils 2024 defense budget, focus on arms restocking and border security (DN)
Italy unveils weapons wish list, forecasts defense spending (DN)
Sweden says second undersea cable damaged in Baltic Sea (WSJ)
U.K. naval chief on threats to undersea infra, ‘we don’t fully understand’ solutions (BD)
U.S. Army activates another air defense battery in Europe (S&S)
Polish election upends Right-wing ruling party (WSJ)
China, Korea, and Asia
Russia’s Lavrov meets with China, N. Korea for security talks (AP)
China military has ramped up provocative, high-risk, and coercive incidents with U.S. aircraft (MT)
Final outcomes of China’s military purge remain to be seen (BD)
China weighs options to blunt US sanctions in a Taiwan conflict (RT)
Sequoia targeted by US Committee’s China tech investment probe (BBG)
U.S. to tighten curbs on China’s access to advanced chip tech (BBG)
China’s economy faces deepening troubles in years ahead (WSJ)
Xi’s crackdown on finance hits two-year mark with no letup (BBG)
U.S. pursues defense partnership with India (NYT)
Middle East and Africa
U.S. thwarts multiple missile and drone attacks this week across Middle East (MT)
U.S. deploys USS Mount Whitney, command and control ship, to eastern Med (NT)
Pentagon id’s units that could deploy in response to Israeli-Hamas conflict (MT)
Hamas fires rockets, hits Palestinian hospital, blames Israel (TH)
The next drone war is coming to Gaza (DO)
At least some weapons used by Hamas have been from N. Korea (AP)
U.S. convinces Israel to allow humanitarian aid from Egypt into Gaza (Ax)
Experts: Hamas drones helped catch Israel off-guard (C4)
The U.S. House wants to attack Iranian proxies amid Israel-Hamas conflict (DN)
Who funds Hamas? A global network of crypto, cash, and charities (RT)
US Treasury targets Gaza crypto business in sanctions to squeeze Hamas (CD)
U.S. Defense Industry News
Boeing begins 3d printing apache helicopter parts (DN)
IBM explores neuromorphic computing with DoD research centers (DS)
Ligado Networks sues DoD, Commerce Dept for $39B over L-band use (BD)
Lockheed wants its own rocket maker for GMLRS (DO)
Lockheed advances Next Gen Interceptor design (BD)
Shield AI sees Hivemind, V-Bat as ‘affordable mass,’ charges mid six figures (BD)
Foreign Defense Industry News
International arms trade surges on Israel-Hamas war, Ukraine war, and others (NYT)
Czechia enters talks with Embraer for C-390 aircraft deal (DN)
Estonia buys armored vehicles from Turkey’s Otokar, Nurol Makina for $211M (DN)
French firms to triple 155mm ammo production, boost weapons output (DN)
Amid conflict, Israel suspends defense sales to Colombia (DN)
Netherlands begin decommissioning submarines, with no clear successor (DN)
Turkey, UAE strengthen defense ties, signing dozens of deals (DN)
Space
Government picks up where private funding falters (SN)
Space Force finalizes plans for commercial surge capacity during crisis (C4)
India plans manned spaceflight for 2025, space station by 2035, manned lunar mission by 2040 (BBC)
Commercial space companies: cut red tape or risk U.S. lead (SFN)
America needs a grand strategy for outer space (TH)
Astroforge conducts hot fire test in advance of 2024 asteroid mission (PL)
Rocket Crew and Stellar Jobs merge to form Space Crew recruitment agency (SC)
Astra stocks continue their freefall (PL)
Nuclear Power & Weapons
China has more than doubled its nuclear arsenal since 2020 (DN)
China claims Pentagon report on nukes distorts truth (RT)
Russian lawmakers vote to revoke signature on Nuclear Test Ban Treaty (DN)
U.S. tests nuclear explosive in response to Russian revocation of NTBT (BBG)
AI, Energy, Robotics, and other Tech
China, U.S. race to add autonomy in militaries (Fox)
Disinformation surge threatens to fuel Israel-Hamas conflict (RT)
OpenAI is in talks to sell existing employees’ shares at an $86B valuation (BBG)
A&D-Focused Finance
Shield Capital, a Californian VC focused on AI and cybersecurity, closed its inaugural Shield Capital Fund I at $186M (FN)
Lockheed Martin beat Q3 expectations for revenue and profit as geopolitical tensions fueled military spending (RT)
TSMC shares rose ~4% after it beat Q3 analyst expectations for revenue and earnings, though they also reported the largest profit decline since 2019 (CNBC)
German lender NordLB is considering options for its $3.2B aviation financing portfolio (BBG)
Qantas Airways will drop its $387M plan to buy out charter flight operator Alliance Aviation Services due to regulatory hurdles (RT)
United Airlines shares fell ~5% despite beating Q3 adjusted earnings and revenue expectations due to a bleak profit forecast for next quarter thanks to a rise in jet fuel prices and a reduction in flights to Tel Aviv (CNBC)
KKR held a third and final close for its KKR Next Generation Technology Growth Fund III with ~$3B in capital commitments (TC)
New Private Equity, a buyout shop that worked with Palantir Technologies to build out its data analytics software, is looking to raise $800M for its first commingled fund (WSJ)
HawkEye 360, a startup using radio frequency technology to monitor transportation across air, land, and sea, raised a $10M Series D-1 from Lockheed Martin Ventures and Company Insiders (VC)
Ai Build, a London-based additive manufacturing software company, raised an $8.5M Series A led by IQ Capital (FN)
Earth imaging startup Urban Sky raised a $9.8M Series A led by New Legacy Ventures, Lavrock Ventures, and Lerer Hippeau (TC)
AnySignal, a radio connectivity and sensing platform for industrial, aerospace, and defense markets, raised a $5M seed round led by Blueyard Capital, First In, Also Capital, and others (BW)
Wireless spectrum venture Ligado Networks is preparing to file for Chapter 11 bankruptcy due to its inability to repay or refinance $4B debt due in November (WSJ)
Lithium extraction and refinery tech startup EnergyX raised a $50M Series B led by General Motors (FN)
US lithium miner Albemarle abandoned its $4.2B buyout bid for Australian lithium developer Liontown Resources due to ‘growing complexities’ after Australian billionaire Gina Rinehart raised her stake in Liontown to 19.9% (RT)
Important Reads
Marc Andreessen’s newly published “techno-optimist manifesto” is an excellent read.
The Hustle explained how “space junk” is quickly becoming a problem as we launch more and more satellites into space.
ICYMI: I sat down with Callye Keen of the Startup Defense to discuss defense technologies, dual use, and much more.
Lighter Side
Keep building!
Andrew