Weekly News Update: Oct 6, 2023
30 Sep - 6 Oct 2023
Good morning,
The news lately never seems to disappoint. Unless you’re looking for good news. Then it’s usually pretty disappointing. On that positive note, the government narrowly avoided a shutdown as House Speaker Kevin McCarthy wrangled a short-term funding deal through the halls that cost him his leadership position. Rep Matt Gaetz (R-FL) led a vote of no-confidence that ousted McCarthy. Much of the dissension from the right wing fringe of the Republican Party appears to be from their desire to defund Ukraine and support Russia. Russian lawmakers are moving to revoke their ratification of the Nuclear Test Ban Treaty. Violence flared in Kosovo this week. Treasury bonds experienced one of the worst meltdowns in U.S. economic history. Mortgage rates hit a 23-year high, at 7.5%, and will likely continue to climb.
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
Defense Innovation Unit seeks modular test systems to scale drone tech (C4)
The military is accelerating use of microgrids (NPR)
Air Force touts Middle East drone program as capable of feeding Replicator Initiative (DO)
New details emerge around tests for new Air Force ‘long range stand off’ cruise missile (ASF)
Army looks to gut special operations forces (WSJ)
Marines begin flight tests of X-58 drone for ‘loyal wingman’ program (DS)
Navy stands down unmanned task force, stands up disruptive capabilities office (BD)
Rand calls for Navy, Marines to relook at surface connectors (DN)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
U.S. House Speaker’s ouster threatens future Ukraine aid (FT)
Russia pulls the Black Sea Fleet from Ukraine, eyes putting them in Georgia’s Abkhazia region (RT)
Putin admits grenade fragments found in Prigozhin airplane crash victims (MT)
Russia foils Ukraine’s largest, cross-border drone attack (C4)
U.S. seizes weapons and ammo from Iran, sends it to Ukraine (DN)
Slovakia elects pro-Russian government, threatens NATO unity (DN)
Sweden pledges more military aid to Ukraine, considers fighter jets (RT)
Sweden increasing troop presence in Arctic to counter Russia (BD)
Israeli arms, drones quietly aid Azerbaijan’s takeover of Nagorno-Karabakh (C4)
NATO boosts forces in Kosovo over violence concerns (T&P)
Serbia says it has reduced army presence near Kosovo, after U.S. expresses concerns (AP)
China, Korea, and Asia
White House prepares for Biden-Xi face-to-face in California (WP)
Japan accelerates purchase of U.S. tomahawk missiles due to security worries (BBG)
Middle East and Africa
U.S. Air Force’s Task Force 99 considers one-way attack drones (ASF)
U.S. fighter jet shoots down Turkish drone over Syria (MT)
U.S. Senate democrats are not happy with Biden’s plan for a Saudi security pact (DN)
Turkey launches new strikes on Kurds in northern Iraq (AlJ)
Yemeni Houthi rebels attack Saudi led coalition forces on Saudi border (AP)
France begins troop pullout from Niger (Pol)
Rebels in Mali say they’ve captured another northern base (AP)
U.S. Defense Industry News
Boeing to pay $8.1M to settle Osprey false claims allegations (DN)
Undeterred by recent scandal over ripping off the government, Space Force awards Booz Allen Hamilton $630M for space systems integration (C4)
Comtech wins $48M from the U.S. army for satellite modems (SN)
Army taps DRS, Intelsat for pioneering SATCOM service pilot worth a total of $7.2M (BD)
Lockheed wins $1.1B contract to design Navy’s integrated combat system (DN)
Microsoft redesigns troubled augmented reality system for U.S. Army
U.S. Air Force gives Raytheon $39M for air defense software prototype (ASF)
Former Chairman of the Joint Chiefs of Staff, Mike Mullins, takes on board leadership for Saildrone (BD)
Foreign Defense Industry News
British defense contractor BAE wins $318M from U.S. Army for jam-resistant navigation tech (C4)
Brazil’s Avibras, Spain’s New Technologies Global Systems partner to build, sell multiple launch rocket systems to Spain (DN)
German Cartel Office approves Rheinmetall maintenance plant in Ukraine (DN)
Israel Aerospace Industries sells spy satellites to Azerbaijan for $120M (C4)
NATO’s ‘Dynamic Messenger’ weaves 5G mesh to link autonomous underwater vehicles (C4)
UAE’s Edge Group acquires stake in Brazilian missile maker SIATT (DN)
Space
Space Force seeks bids for next phase of national security space launch (C4)
Space Force hunts for mature tech in Hyperspace Challenge (DO)
Air Force Research Lab picks 3 contractors for fission powered spacecraft (BD)
Nuclear Power & Weapons
Russia claims its nuclear-powered, nuclear-armed missile has passed all tests (CNN)
Russia lawmakers to consider revoking nuclear test ban treaty ratification (TH)
Israel seems okay with Saudi nukes—to counter Iran (ToI)
Former President Trump allegedly discussed nuclear submarine secrets with foreign national, after leaving office (ABC)
A&D-Focused Finance
Pentagon, SBA now taking applications for private capital loan program (C4)
HCVC allegedly closes new $75M fund for early-stage investments into aerospace & defense, decarbonization (TC)
Anduril is looking to raise $400-500M, less than a year after its $1.5B Series E (CB)
AI security startup Hidden Layer raises $50M from Booz Allen Hamilton (C4)
Reusable rocket startup Stoke Space raised a $100M Series B led by Industrious Ventures (TC)
Regent raises $60M in Series A to continue building electric seaglider (CNBC)
Defense startup Mach Industries raised a $79M Series A at a $335M valuation led by Bedrock Capital (TC)
Castelion raised $14.2M from a16z, Lavrock to ‘rethink defense hardware production’ (TC)
US investment firm Castlelake, Air France, and the Danish state will become new major shareholders in Scandinavian airline SAS following bankruptcy proceedings; total investments in the reorganized SAS will amount to $1.2B (RT)
Important Reads
Defense Scoop has released its inaugural list of ‘influential people in defense tech’.
Packy McCormick wrote a cool breakdown on Anduril’s acquisition strategy.
Not a read, but a listen: I sat down with Callye Keen of The Startup Defense to discuss defense tech, dual use, much more.
Lighter Side
Keep building!
Andrew