Ukraine’s defense industrial base is undergoing a transformation. Under immense wartime pressure, and facing constant drone and missile attacks, Ukraine has moved from relying almost entirely on foreign weapons to becoming a serious defense co-production partner. Ukraine possesses unique experiences and just as important to a digital world, unique data. These “cards” represent Trillions of dollars in potential value over the next two decades.
A growing number of announcements from Kyiv highlight new ventures with the UK, Norway, and major Western defense companies. These partnerships provide more than symbolic solidarity—they are giving Ukraine access to cutting-edge technology, battlefield-ready manufacturing, and long-term industrial leverage. The partnerships are giving Western allies access to Ukraine’s vast and unparalleled battlespace knowledge and technical expertise.
Access to Advanced Technology
Foreign defense firms are opening the door to technology Ukraine could not develop on its own, at least not under wartime conditions.
Palantir’s artificial intelligence and data platforms, for instance, are already embedded within Ukraine’s Ministry of Defense. Their systems help Ukraine integrate multiple data streams—from satellites, drones, and open-source intelligence—into targeting and planning tools. These platforms are used to coordinate demining operations, battlefield analytics, and rapid decision-making in live operations. Some reporting has suggested that Palantir’s systems are responsible for a large share of Ukraine’s targeting success.
In parallel, partnerships with companies like RTX (Raytheon), Lockheed Martin, Boeing, and BAE Systems provide Ukraine with advanced avionics and guided munitions. RTX’s AMRAAM missiles and Lockheed’s PAC-3 interceptors are critical to Ukraine’s air defense. BAE contributes key components to guided systems, including those integrated with air defense and artillery platforms. This technology doesn’t just help Ukraine fight more effectively—it allows its forces to operate in sync with NATO.
Domestic Production at Scale
These partnerships also allow Ukraine to scale up its domestic arms production. The government has announced that it can now produce up to 8 million drones annually. Much of this capacity has been developed through collaboration with Western firms, often with parts and technologies shared or co-produced abroad and assembled in Ukraine.
The UK's recently announced $376 million commitment includes direct investment in drone and air-defense manufacturing with Ukrainian partners. Norway’s Kongsberg is launching in-country operations with the goal of producing missile turret systems and command-control technology inside Ukraine. This kind of localized production ensures the flow of systems tailored to the frontlines—while keeping high-tech capabilities close to the fight.
Not About Export—Yet
Ukrainian law currently prohibits the export of weapons and military equipment during wartime. This means all output, including that produced through joint ventures, is directed to Ukraine’s own military.
However, the government has begun laying the legal groundwork to lift this restriction after the war. Officials have discussed the long-term potential of turning Ukraine into a net exporter of military systems—especially drones. Early forecasts suggest Ukraine could earn billions annually in defense exports once restrictions are lifted. But for now, the focus remains on arming Ukrainian forces. Ukraine also faces the realization that important defense talent and intellectual property leaving Ukraine for “greener pastures” is a real problem. They must quickly find a lucrative and mutually beneficial outlet for this pool of talent.
Strategic Value for Allies
Western defense companies also benefit. Ukraine acts as a live-fire testing ground for new systems and a pressure valve for production backlogs. Partners like Anduril and Rheinmetall are already building drone and rocket motor plants in Europe, using Ukraine’s battlefield experience to refine their designs. For the United States and Europe, co-production with Ukraine offers a way to expand capacity without stretching domestic industrial bases.
Key Takeaways
● Palantir, RTX, Lockheed, and others are giving Ukraine access to top-tier AI, avionics, and guided weapons technology.
● Ukraine’s wartime production is scaling quickly through joint ventures, especially in drones and air-defense systems.
● Current law bans weapons exports, but Ukraine is preparing to shift toward becoming a major arms exporter after the war.
● These partnerships also help Western allies increase production capacity and refine technology through real-time battlefield use.
Benjamin Cook continues to travel to, often lives in, and works in Ukraine, a connection spanning more than 14 years. He holds an MA in International Security and Conflict Studies from Dublin City University and has consulted with journalists and intelligence professionals on AI in drones, U.S. military technology, and open-source intelligence (OSINT) related to the war in Ukraine. He is co-founder of the nonprofit UAO, working in southern Ukraine. You can find Mr. Cook between Odesa, Ukraine; Charleston, South Carolina; and Tucson, Arizona.
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Sources
● Ukraine and UK to boost joint weapons manufacturing
● Zelensky: Ukraine can produce up to 8M drones annually
● Norwegian defense giant Kongsberg launches operations in Ukraine
● Reuters: US defense firms chase European military spending wave
● FT: Anduril teams with Rheinmetall to develop drones
● Forbes: Palantir's tech transforms Ukrainian battlefield
● Militarnyi: Ukraine elevates Patriot air defense to new level
● Reuters: Ukraine asks allies to allocate 0.25% of GDP for weapons production
There is an opinion that lifting weapon exports restrictions could provide industry with additional funds from export sales, which could be then directed to increase production for ZSU.
Example: if some unit's export price is 2x manufacturing price, one unit sold for export would cover production costs of two units - one for export and one for ZSU.
"Palantir’s artificial intelligence and data platforms, for instance, are already embedded within Ukraine’s Ministry of Defense"
I hope that Ukraine doesn't come to regret this decision, however useful it might be in the short term.