The UK defence sector is set to benefit from a significant boost in investment and manufacturing activity following the award of new drone contracts worth more than £400 million.
The deals, announced by the Ministry of Defence at this year's Defence Vehicle Dynamics exhibition, will support skilled employment, expand domestic production capacity and strengthen the UK's defence technology supply chain while equipping the British Army with a new generation of intelligence, surveillance and reconnaissance (ISR) capabilities.
The largest award, worth up to £400 million, has been secured by drone specialist
Tekever to bring its AR5 uncrewed aerial system into British Army service. The long-endurance surveillance platform, which will replace the ageing Watchkeeper fleet, will be manufactured at a new Tekever facility in Swindon.
The contract is expected to support more than 1,000 highly skilled jobs across Tekever's UK operations by 2030, with roles spread across sites in Bristol, Swindon, Lydd, London, Southampton, Edinburgh and West Wales Airport.
Alongside the Tekever award, more than 1,025 small drones are being supplied under a separate £16 million programme involving three UK-based SMEs. The project has already created more than 30 new jobs in Hampshire, Surrey and Exeter, including positions filled by military veterans.
Speaking at the event, Minister for Defence Readiness and Industry Luke Pollard said the procurement programme demonstrates how defence investment can deliver wider economic benefits.
He said: "Our soldiers deserve the best technology, and that's what we're delivering. From small drones giving troops eyes on the enemy, to the AR5 offering commanders better intelligence over the battlefield, we're transforming the Army's ability to see, understand and act first.
"This is defence procurement that backs British industry, creates skilled jobs and keeps our Armed Forces ahead of our adversaries."
The small-drone procurement highlights the growing role of UK innovators in defence technology. Hampshire-based
Evolve Dynamics is supplying 245 FOXE-NATO drones, while Surrey's
Marlborough Communications is delivering 670 Skydio X10 INTL systems. A further 110 SONORA drones are being supplied through a partnership between Exeter-based
Brigantes Consulting and
Harmattan AI.
The contracts form part of a wider effort to develop sovereign defence capabilities and accelerate the adoption of innovative technologies from British industry. The programme also supports the government's broader industrial growth ambitions through investment in advanced manufacturing, engineering and aerospace skills.
Tekever UK managing director Karl Brew said the AR5 programme would help expand the company's British footprint while bringing proven technology into UK service.
He commented: "We are proud to be delivering the AR5 to the British Army at this critical moment for national security. This investment allows us to grow our UK operations, create hundreds of skilled jobs and bring cutting-edge surveillance technology, proven on the battlefield in Ukraine, into service with British forces."
The AR5 agreement begins with an initial order for six aircraft and could rise to as many as 24 by 2029, providing a pipeline of work for UK manufacturing and support operations.
Pic: The Tekever AR5, courtesy of Tekever.