US defence tech startup Anduril Industries is expanding into the UK with plans to open a manufacturing and R&D facility, as the company looks to strengthen its European presence in response to rising geopolitical tensions and booming defence budgets.
The new site will focus on building advanced attack drones and autonomous weapons systems, supplying the UK military and potentially supporting wider European operations, a source familiar with the plans revealed. The facility will also double as a research hub for further developing next-gen military technology.
One location being considered is the Oxford-Cambridge corridor — a region the UK government hopes to transform into Europe’s Silicon Valley. If confirmed, the project could generate thousands of new jobs and solidify the area’s role as a growing defence tech hub.
The timing of Anduril’s expansion comes as the UK raises its defence spending target to 2.5% of GDP by 2027. Across Europe, governments are ramping up military investments amid concerns over reduced US security guarantees.
This surge in defence budgets has already fueled record venture capital activity. In 2024 alone, European defence tech startups secured €1.7 billion in funding — a clear sign of investor confidence in the sector’s future.
Anduril, which has already raised over $3 billion, is reportedly negotiating another $2.5 billion funding round with Peter Thiel’s Founders Fund, potentially pushing its valuation to $28 billion, according to Dealroom.
Anduril’s move into the UK marks the latest sign that US defence tech startups see strategic value in deepening partnerships with the British government.
Earlier this month, Anduril’s UK division secured a £30 million contract to supply attack drones for Ukraine — another step that tightens its relationship with UK defence officials.
Anduril’s arrival follows other major European defence tech players expanding in the UK. German startup Helsing, which closed a €450 million Series C round in 2024, committed to investing £350 million over five years, including plans for a local manufacturing facility.
At the same time, French AI company Mistral is actively seeking defence contracts across Europe and has opened talks with senior military figures in both the UK and Germany, sources told Sifted.
While Anduril’s expansion raises competition for homegrown startups, some industry experts believe the move could benefit the wider ecosystem long-term.
Jack Wang, Principal at Project A Ventures, sees the upside:
“Anduril’s investment will help attract local talent and strengthen the UK’s drone manufacturing expertise. Over time, that knowledge will spread across the UK and European defence tech sector.”
With the demand for AI-powered weapons and autonomous systems climbing, Anduril’s new UK facility is set to play a key role in scaling production — while accelerating innovation.
As Europe’s defence priorities shift, Anduril’s decision to establish manufacturing and R&D operations in the UK could set the tone for what’s next — a race to build smarter, autonomous military technology at scale.
More importantly, this move positions the UK as a critical player in shaping the future of drone warfare and defence tech manufacturing in Europe.
