US defence tech Anduril will open a factory and R&D facility in the UK, as it looks to establish a European presence in the face of rising geopolitical tensions and increased defence spending in the region.
Anduril’s new facility will manufacture the US unicorn’s advanced attack drones alongside other autonomous weapons, as well as operating as an R&D hub, to supply the UK military, a source familiar with the plans told Sifted.
The Oxford-Cambridge corridor — which the UK government has signalled it wants to turn into Europe’s Silicon Valley — is the location of one site under consideration for the new factory, which could create thousands of jobs, the source added.
Last week the UK announced it would be raising its defence budget to 2.5% of the GDP by 2027, as countries across Europe scramble to increase spending on the sector amid a US backtrack on security guarantees.
Those moves point to further boomtimes for a sector that’s seeing record VC funding poured into it in recent years. Defence techs in Europe raised €1.7bn in 2024.
Anduril has raised more than $3bn, according to Dealroom, and is reported to be in talks to raise a further $2.5bn from Peter Thiel’s Founders Fund at a $28bn valuation.
It’s the latest sign that defence tech startups are looking to deepen ties with the UK government.
Earlier this month, the government awarded Anduril’s UK arm a £30m contract to supply Ukraine with its attack drones.
In 2024, German defence tech Helsing — which raised a €450m Series C in July — pledged to set up its own manufacturing facility in the UK as part of a £350m investment into the country over a five year period.
French AI startup Mistral is also pursuing defence contracts with governments across Europe and is said to be courting officials close to both the British and German militaries, two sources familiar with the matter told Sifted.
While Anduril’s UK play will ramp up competition in the market and make it more challenging for homegrown startups, long term it could bolster the country’s defence tech sector, says Jack Wang, principal at Project A Ventures.
“It will encourage more local talent across the UK and Europe to join defence tech startups and scale-ups, ultimately improving UK drone manufacturing capabilities,” he says. “That expertise will eventually feed into the wider UK and European ecosystem.”
Sifted approached Anduril for comment.
Read the orginal article: https://sifted.eu/articles/anduril-uk-factory-news/
