US defence giant eyes Isle of Wight for next-generation fighter drone production

A major US defence technology company is preparing to manufacture next-generation autonomous fighter drones for the British Army on the Isle of Wight, marking one of the most significant foreign defence investments in UK aerospace in years.

California-based Anduril Industries, the fast-rising defence start-up valued at $30bn, has partnered with British engineering group GKN Aerospace to build components for the drones in Cowes. The plan hinges on winning a Ministry of Defence competition to produce a new class of autonomous systems designed to fly alongside the Army’s Apache attack helicopters.

The programme, known as Project NYX, is expected to reshape Britain’s battlefield aviation capabilities. Tender documents describe an autonomous platform able to operate in “contested airspace”, carrying out reconnaissance, target acquisition and precision strikes while reducing risk to aircrew. The goal is to boost the “lethality and survivability” of Apache helicopters while sharply lowering maintenance and logistical demands.

The MoD plans to spend around £100 million over the next two years on the initial design phase alone, a sign of the urgency created by the widespread use of autonomous drones in the Russia-Ukraine war, which has transformed military expectations around unmanned systems.

Anduril, founded in 2017 by Palmer Luckey, the tech entrepreneur who previously created Oculus VR, has rapidly become one of the most in-demand defence suppliers in the US, championing AI-enabled, low-cost autonomous technology at scale. Its surge in valuation over the past year reflects soaring global demand for autonomous defence systems.

Luckey has been outspoken about the moral case for using advanced AI to reduce civilian casualties and improve decision-making. “When it comes to life-and-death decisions, it is too critical an area not to apply the best technology available,” he told Fox News. “If you’re talking about killing people, you must minimise collateral damage and be as effective as possible.”

Anduril has spent the past two years expanding its UK footprint, establishing partnerships with domestic engineering firms including Atom Performance Technologies, Flarebright, Olsen Actuators and Isembard. The company claims its UK supply chain already supports 50,000 jobs, and the new Isle of Wight development would deepen those ties further at a time when the UK is set to increase defence spending to £73.5bn by 2028.

Dave Bond, senior vice-president of defence technology at GKN Aerospace, hailed the move as a “hugely exciting partnership” that will bring “all-new defence solutions to the field in rapid time”.

Local leaders welcomed the announcement as a boost for advanced manufacturing on the Isle of Wight. Richard Quigley, MP for Isle of Wight West, said the partnership “demonstrates that innovative, high-tech defence capability is being developed right here”, helping to secure local jobs and build critical engineering skills.

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US defence giant eyes Isle of Wight for next-generation fighter drone production