Weekly News Update: Sep 22, 2023
16-22 Sep 2023
TGIF!
I’m ‘on holiday’ currently, so hitting my self-imposed deadlines ain’t happening. Now, let’s dig in to the week’s news.
Markets have dropped a bit, erasing gains that ARM Holdings and Instacart saw following their IPOs. The Fed paused its rate hikes, although there will likely be another bump before the end of the year. A U.S. Marine Corps pilot ejected from his F-35, which disappeared for several days before its wreckage was found. Ukrainian President Zelenskyy appeared before U.S. Congress, making a plea for continued aid as the country continues to work to restore its territory from Russian invaders. His request may have fallen on deaf ears as congressional republicans push the country closer to a government shutdown.
Read more about the issues surrounding aerospace and defense technology below.
Weekly News Round Up
Military
U.S. Defense modernization and innovation
The Senate has confirmed several of the top leaders for the military, including a new Chairman of the Joint Chief (MT)
House GOP plans to pass defense budget fail again, shutdown looms (MT)
Pentagon officials: government shutdown will hurt our ability to help Taiwan, emboldens China (S&S)
Pentagon eyes microelectronics hubs across U.S. to bolster chip industry (C4)
Under DIU ‘3.0,’ innovation hub looks to take on more embedded role throughout DoD (BD)
Air Force wants MQ-9 Reapers to serve as motherships for smaller drones (ASF)
Army’s Dark Eagle hypersonic weapon fielding delayed to year’s end (DN)
Navy launches board to help services leverage new science and tech (DN)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
Zelenskyy returns to D.C. to drum up support as GOP dissent grows (MT)
White House announces additional $325M in military aid to Ukraine (TH)
Germany plans additional $428M in military aid to Ukraine (BBG)
Ukraine strikes Russian Black Sea Fleet HQ in Crimea (FT)
Ukraine’s counteroffensive pierces Russian ‘Surovikin Line’ (ISW)
New U.K. defense chief pledges more air-defense, strike weapons for Kyiv (DN)
Flood of Russian wheat halves world prices from wartime high (BBG)
EU may become as hooked on China batteries as it was on Russian energy (RT)
Azerbaijan claims full control of breakaway region and holds initial talks with ethnic Armenians (AP)
Azerbaijan and Armenian forces reach cease-fire for breakaway region (MT)
Estonia plans loitering-munitions unit to hunt enemy air defense (DO)
France, Germany remain committed to jointly developed tank (DN)
U.S. charges Russian man with smuggling microelectronics amid Ukraine war (C4)
China, Korea, and Asia
U.S. sends drone ships to Western Pacific in first deployment near China (WSJ)
China’s former foreign minister ousted after alleged affair (WSJ)
BlackRock strategists downgrade China stocks on growth concerns (BBG)
Australia to focus R&D on asymmetric warfighting, chief scientist says (C4)
Middle East and Africa
Russian Defense Minister Shoigu in Iran, visits missile, drone display (AlJ)
U.S. sanctions firms in China, Russia, Turkey over Iran’s drone program (C4)
Fire at Iran defense ministry warehouse extinguished, under investigation (RT)
White House, Saudis explore defense treaty modeled after Asian pacts (NYT)
U.S. Defense Industry News
E-Vac Magnetics wins $94M to produce Rare Earth Magnets (DoD)
GDLS, McQ, Oshkosh, & McQ picked to build prototype robotic combat vehicles for a total of $25M (DN)
Mastadon Design wins $1.5M to prototype man-portable electronic jammer (C4)
Leidos wins $7.9B U.S. Army information technology contract (C4)
Lockheed trying to catch up with L3Harris, in late-stage talks with solid-rocket motor partner (DN)
True Anomaly wins $17M for space domain awareness software (SN)
Foreign Defense Industry News
Argentina wants U.S. retired surplus CH-46 helicopters to replace Mi-17s (DN)
Australia to spend $1B to boost maritime surveillance (RT)
Brazil’s Embraer to sell 4x C-390 cargo planes to Austria for $500M (DN)
Israel unveils new Barak tank, with AI, sensors, and cameras (DN)
Israel’s Elbit sells SkyStriker loitering munition for $95M to mystery European customer (C4)
Romania considers joining French-led Mistral procurement program (DN)
S. Africa’s Paramount Group sells Mwari aircraft to DRC (DN)
Paramount expands Indian manufacturing hub for armored vehicles (DN)
S. Korea’s president nominates new defense minister (DN)
Spain’s Indra to lead consortium to build electronic-attack system for E.U. (DN)
Space
Germany joins Artemis! (BD)
DARPA wants new ideas for space weapons (Sp)
RTX installing space observation system in California (C4)
SpaceX sues Justice Department to stop discrimination case (WSJ)
Nuclear Power & Weapons
U.S. will spend more than $750B over 10 years to upgrade nuclear defense (C4)
Brazil calls on rich nations to pay for global energy transition (BBG)
Artificial Intelligence, Robotics, Energy, and other cool tech
OpenAI says next iteration of Dall-E coming in October (BBG)
New Orleans DA fights ‘terrorism’ on streets with AI spycraft (WSJ)
Chinese artificial intelligence startup Beijing Fourth Paradigm is set to price its IPO on the low end of its price range and raise $131M (RT)
A&D-Focused Finance
Chipmaking equipment maker Kokusai Electric will list on the Tokyo Stock Exchange on October 25th, raising $750M at a ~$3B valuation (RT)
Munich-based defense AI startup Helsing has secured a €209 million Series B led by General Catalyst.
Important Reads
Cynthia Cook and Christine Michienzi of CSIS prescribe how to ensure the defense industrial base and supply chain resiliency.
Noah Sheinbaum and Jeff Decker outline why having the government involved in production would be disastrous for Replicator.
Lighter Side
Keep building!
Andrew