Ukraine Launches $23 Million Push to Mass Produce Military Explosives

Ukraine will invest nearly 1 billion hryvnias (about $23 million) to expand domestic production of explosives under a new Brave1 grant program, aiming to boost the manufacture of critical materials used in ammunition and other weapons as the country continues to scale its defense industry.

The announcement was made by Ukraine’s Defense Minister Mykhailo Fedorov during the Brave1 Advantage event in Kyiv on June 30.

According to Fedorov, six Ukrainian companies won the Brave1 competition dedicated to explosives production. Their projects have a combined value of UAH 944 million (about $23 million), with UAH 620 million (about $15 million) to be provided through state co-financing.

The funding will support the production of key military-grade explosives, including TNT, RDX, PETN, and plasticized C4 analogues, all of which are widely used in artillery ammunition, aerial bombs, missiles, demolition charges, and other military systems.

“In just three years, Brave1 has become Europe’s largest defense tech venture investor, issuing nearly 1,000 grants worth over UAH 5.8 billion (about $140 million),” Fedorov said during the event.

He added that Brave1 grants increasingly reflect Ukraine’s battlefield priorities, with the government focusing investment on technologies capable of delivering immediate operational advantages.

According to Fedorov, these priorities include battlefield robotization, low-cost AI-enabled cruise missiles, affordable Ukrainian-made short-range air defense radars, and directed-energy weapons—including laser air defense systems that are already undergoing testing.

Alongside the explosives initiative, Brave1 unveiled an updated grant program featuring 53 new technology priorities. These include advanced missile materials and components, autonomous drone swarms, radar and navigation systems, underwater drones and torpedoes, high-precision ammunition, electronic warfare systems designed to counter Russian glide bombs and missiles, hyperspectral cameras, laser weapons, and railguns.

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Depending on the maturity of a project, Ukrainian developers can receive grants ranging from UAH 500,000 (about $12,000) to UAH 8 million (about $190,000).

Brave1 also launched a new grant track under the international BraveTech EU initiative. Unlike previous programs, the new funding mechanism allows developers to apply for grants of up to UAH 8 million (about $190,000) regardless of their technology readiness level.

The program covers more than 40 technological priorities, including high-speed strike systems, autonomous guidance modules, evacuation drones, hand-launched interceptor drones, active protection systems, light torpedoes, electromagnetic interference technologies, bunker-buster munitions, and hydrogen fuel cells.

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The announcements came during Brave1 Advantage, where more than 70 Ukrainian manufacturers showcased ammunition, explosives, strike systems, and other defense technologies.

Brave1 says it has now issued nearly 1,000 grants worth more than UAH 5.8 billion (about $140 million) since its launch three years ago. According to the cluster’s CEO Andrii Hrytseniuk, Ukraine’s defense technology sector has grown to more than 2,500 companies producing UAVs, ground robots, naval drones, electronic warfare systems, ammunition, explosives, and other battlefield technologies.

Earlier, Defense Minister Mykhailo Fedorov said Ukraine was testing laser air defense systems and had achieved up to 95% drone interception rates over Kyiv, while also expanding the use of interceptor drones and developing AI-enabled cruise missiles.

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