Ukraine Invests $2.5 Billion in Drone Production, Signs Deals with 76 Local Manufacturers

by Belinda

Ukraine’s Defence Procurement Agency has signed contracts with 76 local drone manufacturers over the 2024–2025 period, investing UAH 104.2 billion (US$2.5 billion) to ramp up production and improve the military’s technological capabilities.

The move, announced by Ukraine’s Ministry of Defence on April 16, supports the country’s strategy to strengthen its defense sector, improve battlefield mobility, and expand local production in response to Russia’s ongoing invasion.

“These contracts are part of the ministry’s policy for technological rearming of the army,” said Hlib Kanevsky, Director of the Procurement Policy Department. “We aim to boost operational response and support domestic defense production.”

From 20,000 to 200,000 Drones a Month

Since the start of the full-scale war in 2022, Ukraine has rapidly scaled its drone production. Monthly output grew from around 20,000 units in early 2024 to more than 200,000 by early 2025, with annual production exceeding 2 million drones. The country now aims to reach 4.5 million drones in 2025.

This major production increase helps Ukraine reduce its reliance on foreign arms and strike Russian positions deep behind enemy lines with cost-effective and locally made technology.

Broad Range of Drone Capabilities

Ukraine’s drone arsenal now includes various specialized models from different manufacturers:

  • 36 companies produce First-Person View (FPV) drones used for fast, precise front-line strikes.
  • 14 manufacturers make bomber drones, which drop ammunition from the air with high accuracy.
  • 12 companies supply reconnaissance and wing-type drones that assist with aerial surveillance and adjusting artillery fire.
  • 5 firms create deep-strike drones capable of hitting targets over 400 km behind enemy lines.
  • 5 others provide reusable strike drones, which can return to base after deploying explosives.
  • 3 manufacturers develop short-range kamikaze drones for tactical target destruction.
  • 1 producer specializes in aerial targets used for training and testing air defense systems.

Support for Innovation and Development

To further accelerate growth in the military tech sector, Ukraine recently launched a government grant program aimed at supporting developers of military equipment and weapon components.

This comprehensive investment in drone technology demonstrates Ukraine’s shift toward high-tech warfare, aiming to compensate for Russia’s larger arsenal with smarter, faster, and homegrown solutions.

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