European Defence Fund funnels money to drones, hypersonic defense, AI

Published on May 7, 2025

The European Defence Fund (EDF) has allocated €910 million to 62 defense projects in its latest funding round, supporting areas such as drones, autonomous mine-sweeping, and defense against hypersonic weapons. Key initiatives include ENGRT II for next-gen rotorcraft, iMUGS2 for unmanned ground vehicles, and Eurosweep for autonomous naval mine-clearing. This round marks the EDF reaching half of its nearly €8 billion budget through 2027 and includes Ukraine’s first participation, strengthening its integration with the EU defense sector. Notably, small and medium-sized enterprises received a record 27% of funding, and major projects led by Airbus, Milrem, and others span radar systems, cyber defense, AI applications, and advanced missile technologies.

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