EU Allocates €910 Million to Boost Defence Manufacturing and Innovation

The European Commission has announced a €910 million investment under the European Defence Fund (EDF) to enhance defence manufacturing capabilities across the European Union. The funding will support projects focused on improving military mobility, advancing air defence systems, and developing innovative materials for defence purposes.

For the first time, the Ukrainian defence sector will be eligible to participate in these projects. According to the Commission, this inclusion will foster stronger collaboration between Ukrainian and EU-based manufacturers, contributing to shared goals in security and innovation.

The EDF, with a total budget of €7.3 billion through 2027, aims to support joint initiatives among EU and Norwegian companies of all sizes, as well as research institutions. In 2025, €45 million will be allocated specifically to projects aimed at developing breakthrough technologies that can enhance or replace existing defence equipment and concepts. Some of the initiatives will focus on producing radar-invisible materials.

Additional areas of development include artificial intelligence-powered air defence systems, the creation of a common European mine-clearing system, and the next generation of rotorcraft to be deployed by 2030. The European Commission will finance these projects entirely, without requiring co-funding.

Further investment will target improvements in military medical assistance, protection against chemical, biological, radiological, and nuclear threats, and advancements in biotechnology. Projects will also support innovations in air combat, missile defence, and overall military operations, the Commission added.