UK to Build £400M Drone Plant as Ukraine War Drives Demand

Britain will open a £400 million ($550 million) drone factory in Swindon, the UK government announced in a press release, bringing production of the Tekever AR5 long-range drone to the country for the first time and expanding work on the RAF’s AR3 drones.

The project is closely linked to support for Ukraine as it continues to fight Russia’s invasion.

The UK Defence Secretary John Healey said the new facility, to be run by the Portuguese Tekever company, will start production next year.

The 23,600-square-meter site will cover the full development cycle – from research and prototyping to mass production – and is expected to create about 1,000 highly skilled jobs.

The plant will also be central to Tekever’s €460 million ($540 million) Overmatch program, aimed at scaling UK drone production, advancing autonomous systems, and strengthening supply chains for both domestic defense and allies such as Ukraine.

Both the AR5 and AR3 are in service with Ukraine’s Armed Forces.

Since 2022, Britain has spent about £270 million ($370 million) on Tekever drones for Ukraine, supplied both directly and through the UK-administered International Fund for Ukraine.

The AR3, a light reconnaissance drone, has logged more than 10,000 combat hours and helped destroy Russian weapons worth billions, according to Ukrainian military analysts.

Ukrainian forces have used the AR3 not only for reconnaissance but also to conduct strikes deep inside Russian territory. In 2024, an AR3 reportedly hit a Voronezh-DM radar in Russia’s Krasnodar region.

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Ukraine is intensifying a sustained drone campaign targeting Russian logistics, particularly along key southern supply routes such as the M‑14 corridor to Crimea. At the same time, battlefield assessments from commander Andriy Biletsky suggest improved conditions for Ukrainian forces, while US Secretary of State Marco Rubio signaled waning US engagement in mediation efforts.

The drones have also been spotted over occupied parts of Kherson and Zaporizhzhia, as well as Crimea.

Tekever says it adapts its systems based on Ukraine’s battlefield experience. In April 2024, the company opened a presence in Ukraine to work directly with local specialists on research and development.