Sovereign Defense Boom: The €381 Billion Shift to Local Military Tech

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Dec 24, 2025, 09:00 ET

Issued on behalf of VisionWave Holdings, Inc.

VANCOUVER, BC, Dec. 24, 2025 /PRNewswire/ -- Equity Insider News Commentary – European and NATO allies confirmed a credible pathway to achieving 5% GDP defense spending by 2035 at the December 3 NATO Foreign Ministers meeting, reinforcing the strategic imperative for Allied nations to localize military production and reduce reliance on non-European suppliers^[1]. The European Union's €150 billion SAFE instrument, adopted in May 2025, specifically mandates that at least 65% of defense procurement components must originate from EU, EEA-EFTA, or Ukrainian suppliers, accelerating the shift from imported systems to sovereign industrial capacity^[2]. This mandate for localized industrial capacity drives the growth trajectory for VisionWave Holdings, Inc. (NASDAQ: VWAV), Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), Elbit Systems Ltd. (NASDAQ: ESLT), Kraken Robotics Inc. (TSXV: PNG) (OTCQB: KRKNF), and BAE Systems plc (OTCPK: BAESY).

European defense investments are projected to reach €381 billion in 2025, representing 2.1% of GDP and exceeding NATO's previous 2% guideline for the first time^[3]. This spending surge creates an industrial expansion opportunity of up to €235 billion annually as European defense firms scale production to meet demand for precision munitions, autonomous systems, and naval capabilities across Allied nations^[4].

VisionWave Holdings Inc. (NASDAQ: VWAV) recently completed the acquisition of Solar Drone Ltd., an autonomous robotics company and subsidiary of BladeRanger, marking the defense technology developer's first acquisition since its July 2025 public listing. The transaction closed through a Share Purchase Agreement involving 1,800,000 shares of common stock, positioning VisionWave to address defense applications alongside the solar operations and maintenance robotics market.

"The completion of the Solar Drone acquisition marks an important inflection point for VisionWave," said Douglas Davis, Executive Chairman of VisionWave. "This is not a standalone asset, but a platform capability that strengthens our autonomous robotics roadmap across defense, security, and critical infrastructure. We believe Solar Drone may accelerate our ability to deploy intelligent, mission-ready systems at scale."

The acquisition provides VisionWave with access to autonomous systems designed for critical infrastructure monitoring across more than 165 GW of installed U.S. utility-scale solar capacity and over 260 GW in Europe.

Solar Drone completed a 100-day Proof of Concept with DB InfraGO AG through DB mindbox, with DB InfraGO AG recommending advancement to discussions with Sky Operations, DB Services, and DB Energie departments. The company's autonomous robotics capabilities complement VisionWave's development of Unmanned Ground Vehicle platforms and counter-drone systems designed for defense and security applications. The integration of Solar Drone's technologies supports VisionWave's strategy to deliver autonomous solutions across multiple operational domains.

VisionWave initiated the patent application process for a planned series of patents covering key technologies underlying Argus, the company's space-enabled, AI-driven counter-unmanned aircraft system developed in collaboration with BladeRanger. The intellectual property strategy targets Argus's core architecture including the SkyWeave high-frequency communications backbone, space and ground-based drone detection methods, and end-to-end decision frameworks for detection, classification, tracking, and engagement. Additional filings are expected to address HF-enabled sensor fusion, multi-layer control logic, and secure encryption mechanisms optimized for contested environments.

VisionWave announced a non-binding letter of intent with Evie Autonomous Limited to explore a £500,000 Proof-of-Concept program integrating autonomous vehicle technology into VisionWave's Unmanned Ground Vehicle platforms. The POC program targets advanced navigation and multi-sensor fusion capabilities for the Varan UGV platform unveiled in November 2025, with discussions anticipated to continue into 2026 pending definitive agreements. The partnership discussions align with VisionWave's expansion of its London-based UGV research and development engineering team.

VisionWave's acquisition strategy and technology development initiatives position the company to address defense, security, and commercial markets through a multi-domain autonomy approach spanning counter-UAS systems, autonomous ground vehicles, and industrial robotics applications.

CONTINUED… Read this and more news for VisionWave Holdings at:
https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/

Kratos Defense & Security Solutions (NASDAQ: KTOS) has opened a new 10,000 square foot facility in Vancouver for PT6A and PT6T engine overhaul while launching a 60,000 square foot Jerusalem facility for its Microwave Electronics Division. The British Columbia expansion strengthens aerospace maintenance operations for Canadian operators, while the Jerusalem facility includes 20,000 square feet of clean-room space for precision microwave assembly. Both investments expand Kratos' international manufacturing footprint for defense applications.

"Our expansion in Jerusalem reflects Kratos' commitment to global partnerships and sovereign-capable production," said Eric DeMarco, President & CEO of Kratos Defense & Security Solutions. "Our long-standing presence in the region gives us a strong base from which to deliver readiness through advanced microwave and digital technologies."

The facilities position Kratos to meet accelerating demand for both aerospace maintenance services and RF assemblies supporting international defense programs. The Jerusalem expansion follows Kratos' acquisition of Orbit Technologies Ltd., further enhancing microwave capabilities.

Elbit Systems Ltd. (NASDAQ: ESLT) has received budget approval from the Hellenic Parliament and KYSEA (Government Council for National Security) for its PULS rocket artillery system, with the company anticipating a material contract following completion of commercial negotiations with the Hellenic Ministry of National Defense.

The PULS system provides a comprehensive solution capable of launching unguided rockets, precision-guided munitions, and missiles with various ranges. The launcher is fully adaptable to existing wheeled and tracked platforms, enabling significant reductions in maintenance and training costs for the Hellenic Armed Forces.

Kraken Robotics Inc. (TSXV: PNG) (OTCQB: KRKNF) successfully demonstrated its KATFISH Launch and Recovery System on TKMS ATLAS UK's ARCIMS USV for NATO navies in November 2025 off Portland, UK. The system represents the industry's first air-deployable, 300-meter depth rated autonomous towed synthetic aperture sonar platform, with KATFISH collecting high-resolution data at 200-meter range per side and streaming real-time imagery at 3 cm x 3 cm resolution. The demonstration showcased autonomous mission planning in sea state three conditions with satellite data transmission to shore command centers.

"With the surge in unmanned systems for defence, naval forces need the best technology available to protect national security," said Greg Reid, CEO of Kraken Robotics. "With its ability to safely and autonomously launch and recover KATFISH from USVs, our USV-LARS allows small naval platforms to collect KATFISH's high resolution synthetic aperture sonar data, significantly increasing their capabilities and acting as force multipliers."

The all-titanium construction provides low magnetic signature for mine countermeasure operations and underwater infrastructure inspection. Kraken and ATLAS UK completed integration, testing, and demonstration in two weeks, demonstrating rapid deployment capability.

BAE Systems plc (OTCPK: BAESY) has signed two contracts worth approximately $171 million for its Bofors 40mm and 57mm 3P (Prefragmented, Programmable, Proximity-fused) advanced ammunition in a combined procurement from both the Swedish Defence Materiel Administration (FMV) and the Finnish Defence Forces Logistics Command (FDF LOG COM). The Swedish Armed Forces will receive both 40mm and 57mm ammunition, while the Finnish Navy will receive 57mm ammunition as additions to their current stock. The state-of-the-art ammunition is a flexible and multipurpose round suitable to defeat targets such as drones, missiles, helicopters, swarming boats, surface vessels and land targets.

"As a trusted partner to Sweden and Finland, this joint purchase marks an important step in further strengthening defence capabilities in the region and enhancing bilateral cooperation to keep Europe safe," said Lena Gillström, president of BAE Systems Bofors. "We are delivering cutting-edge solutions to put our customers in the best position to meet future challenges."

The ammunition will primarily be used by the Stridsfordon 90 and naval gun system within the Swedish Armed Forces. Additionally, existing and future air defense units equipped with 40 mm anti-aircraft guns will be able to employ this ammunition to address a wide range of aerial threats.

Article Sources: https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/

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