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“No U.S. Company is Keeping Up"—Pentagon Turns to Ukraine for Drone Tech

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“No U.S. Company is Keeping Up"—Pentagon Turns to Ukraine for Drone Tech
An assembled FPV drone lies on a test standing in the drone workshop on March 5, 2025, in Lviv, Ukraine. (Source: Getty Images)

With U.S. drone startups failing to meet battlefield demands, the Pentagon is turning to Ukraine’s war-proven technology to enhance its drone capabilities, The Wall Street Journal reported on March 11.

Despite pouring billions into drone development, American startups have struggled to produce effective, affordable unmanned aircraft.

In contrast, Ukrainian manufacturers—facing daily combat conditions—have rapidly refined and mass-produced drones, making them a valuable asset for the U.S. military.

Now, American and Ukrainian defense startups are teaming up, with the Pentagon showing strong interest in integrating Ukrainian drone technology into U.S. forces.

“No U.S. company is keeping up with Ukraine,” said Nathan Mintz, co-founder of California-based startup CX2, which has partnered with Ukrainian manufacturers.

“You know their stuff works. They’ve got the ultimate high-stakes laboratory meant to battle-proof all this stuff.”

The U.S. Department of Defense has recently awarded contracts to two U.S.-Ukrainian partnerships to test long-range attack drones. If successful, these battle-proven drones could soon enter American military service.

One standout Ukrainian company, Skyfall, has completed over 1.5 million combat missions for Ukraine and produces thousands of drones daily. The Defense Department has now added Skyfall to its list of approved suppliers—marking the first time a Ukrainian drone manufacturer has been cleared to provide tech for the U.S. military.

Skyfall’s bomber drones, enhanced with software and sensors from CX2, could be deployed by U.S. forces later this year, pending security tests.

Ukrainian drone makers are now looking beyond the war, eyeing the U.S. as a key market.

“Ukraine has made it pretty clear that they intend on being the drone capital of the planet once this war is over,” said Derek Whitley, co-founder of U.S. defense startup Vivum.

With Ukraine producing over 2 million drones in 2023 alone, the industry is booming.

Unlike expensive and often ineffective American models, Ukrainian drones cost a fraction of the price, work in heavily jammed electronic warfare environments, and are battle-tested against Russian forces.

American startups, meanwhile, have seen their drones fail in Ukraine due to slow production, poor resistance to jamming, and lack of real-world testing. Some U.S. companies that sent drones to Ukraine watched them “fall out of the sky” under electronic warfare conditions.

Despite growing partnerships, Ukraine’s strict ban on drone exports could slow progress. Ukrainian manufacturers are lobbying Kyiv to lift restrictions so they can sell drones abroad.

Skyfall is currently seeking special permission to sell its bomber drones to the U.S., arguing that drones Ukraine can’t afford to buy could be supplied to Western allies instead.

Another challenge is that many Ukrainian drones rely on Chinese components, which would need to be replaced to meet Pentagon security standards.

Regardless, Ukrainian manufacturers remain undeterred.

Sine.Engineering, which supplies radio and navigation software, is expanding operations outside Ukraine to work with U.S. defense contractors.

“This year, one of the main priorities for us is expansion outside of Ukraine,” said Andriy Chulyk, the company’s CEO. “This is a really big war we have here right now, and we need to keep innovating.”

As the U.S. seeks to modernize its drone fleet, the answer may not lie in Silicon Valley—but on the battlefields of Ukraine.

Earlier, reports emerged that Ukraine was planning to acquire approximately 4.5 million first-person view (FPV) drones in 2025, more than doubling last year’s procurement rate as the war with Russia becomes increasingly high-tech.

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