Wales becomes UK launchpad for autonomous defence technology under £50m growth deal

Daniel Bevan - Editor

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Wales is set to play a central role in the UK’s future defence innovation landscape following the signing of a £50 million agreement.

The Wales Defence Growth Deal, signed at Cardiff Castle by Defence Secretary John Healey, First Minister Eluned Morgan and Secretary of State for Wales Jo Stevens, is designed to position the nation as a UK hub for next-generation defence systems.

The agreement will support the design, testing and manufacture of autonomous technologies and uncrewed systems used in areas such as intelligence, surveillance and reconnaissance, alongside emerging drone capabilities.

A key element of the deal will expand access to Ministry of Defence testing infrastructure across Wales, including facilities at MOD Aberporth.

In partnership with the Civil Aviation Authority and military regulators, air corridors across central Wales will also be widened to enable more extensive testing of uncrewed aerial systems by both industry and the armed forces.

The investment aims to remove longstanding barriers that have limited smaller firms’ participation in defence supply chains.

Welsh small and medium-sized enterprises will be given improved access to secure defence contracts by streamlining security clearances and enabling companies to work directly with the Ministry of Defence rather than solely through prime contractors.

Alongside industrial investment, the UK and Welsh governments intend to establish a new Defence Technical Excellence College by September 2027 to train the next generation of defence engineers and support expanding autonomous capabilities.

Defence Secretary John Healey MP said: “We pledged a Defence Growth Deal for Wales and this is the UK Government delivering on that commitment.

“Wales is central to the defence of the UK and I am proud to launch this new partnership that will transform the nation into a centre for innovation. It will create good jobs and drive growth in Wales.

“We’re investing £50 million in this deal to make Wales the UK’s launchpad for uncrewed systems.

“Expanding test ranges and opening up Welsh skies will help put Britain at the forefront of the autonomous defence technology that our Armed Forces need to fight and win.”

The First Minister of Wales Eluned Morgan said: “Wales will play its part to secure our national defence in an increasingly unstable world.

“The aerospace and defence sector in Wales is vitally important to the economy and directly employs over 16,000 highly skilled workers.

“The backbone of the sector is the huge number of small and medium size companies across the whole of Wales who are the life blood of development and innovation.

“The duel use nature of the deal means that its benefits will be felt across the wider Welsh economy.

“It is vital now that we see this commitment from the MOD filter down to the SMEs quickly and improves the defence capability of the UK.”

Secretary of State for Wales Jo Stevens said: “Today’s deal will shape the future of the defence industry for years to come and will deliver economic growth and thousands of skilled well-paid jobs.

“We are building on Welsh expertise and our strong base by investing £50 million so Wales can lead the way in 21st century autonomous defence technology.”

Kevin Craven, CEO of ADS, the trade association representing more than 1800 businesses throughout the UK in aerospace, defence, security and space, said:

“The Defence Growth Deals were a standout feature of the Defence Industrial Strategy – aiming to leverage both well-established and developing strengths of the defence industrial base across the UK.

“Here in Wales, where the industrial footprint includes particular strengths in unmanned capabilities, world-renowned componentry and cutting-edge dual use technologies, this support is particularly pertinent.

“Today’s Wales Defence Growth Deal dovetails the two core motivations of industry and government alike: building UK and effective deterrence capabilities, while providing high-quality, high-value employment that strengthens local communities.

“ADS are delighted to have worked in concert with our regional partners, the Ministry of Defence team and of course our brilliant members on how this support can truly unlock Wales’ potential.

*We look forward to building on this further.”

Almost 4,000 jobs in Wales are currently supported through Ministry of Defence industry spending, part of more than £1 billion invested annually with the Welsh defence sector.

The new funding is expected to accelerate the development of defence platforms designed, built and tested in Wales across land, sea and air domains, while also supporting work on critical materials resilience and sovereign capability.