Ukraine plans to manufacture 2.5 million drones this year, having signed contracts worth $2.5B with 76 companies.

According to the estimates, drone production will rise by 150%, increasing from one million last year to 2.5 million in 2025. The Ukrainian Ministry of Defense has allocated over $2.5B for 2024-2025 to support local drone manufacturers, working with 76 companies and leveraging more than 500 suppliers in total.

Additionally, Ukraine is receiving drones from its international partners, particularly from Germany and the UK, which plans to expand its supply by 900% and provide 100,000 drones by April 2026.

Notably, Ukrainian FPV drones, costing as little as $400 in some instances, can disable or destroy costly Russian military assets. Estimates from RUSI indicate that drone attacks have caused up to 70% of Russian equipment losses. The Ukrainian military-industrial sector has the capacity to produce about 10 million drones annually.

Furthermore, recently the Ministry of Defense authorized the use of the domestic Chief-1 unmanned aerial system, aimed at targeting enemy aircraft and personnel.

Meanwhile, startup Buntar Aerospace has unveiled the Buntar-3 reconnaissance drone, designed to withstand electronic warfare tactics, which has already undergone testing at the frontlines. The startup is now moving towards contracting and is planning to commence serial production of the Buntar-3.