EIC to boost defence startups

The European Innovation Council (EIC) and Horizon Europe research programme are enhancing their support for startups working on dual-use defence and civilian technologies as part of the newly introduced ReArm plan by the European Commission. The primary goal of this initiative is to stimulate investments in defence-related projects within the EU budget, aiming to bolster research and development, production, and high-volume manufacturing by European defence companies.

Despite member states collectively spending €104 billion on defence in 2024, a significant portion of this expenditure came from non-EU sources. The ReArm plan seeks to expand the scope of the Strategic Technologies for Europe Platform (STEP) to encompass defence-related technologies and products, focusing on areas such as AI, cloud and quantum computing, advanced connectivity, autonomous systems, and alternative energy sources.

With a specific emphasis on AI and quantum technologies, NATO has already begun investing in startups in these sectors, including companies like Fractile in AI, Space Forge in materials, and Aquark in quantum clocks. This strategic move aligns with the broader goal of enhancing innovation and scaling up funding through the EIC within Europe.

The landscape of modern warfare is rapidly evolving, with advancements in drone technology playing a pivotal role in shaping combat strategies. Robotics, particularly autonomous ground vehicles, are expected to play an increasingly significant role in early combat operations. Companies like Helsing in Germany are establishing modular factories across Europe to manufacture drones, while platforms like the THeMIS from Milrem Robotics are already being deployed for various military purposes.

While AI-powered military robots are still in the nascent stages of development, there is a growing opportunity for Europe to excel in the realm of robot weapons and the accompanying software systems. However, the competition in this domain is fierce, with strategic rivals heavily investing in cutting-edge technologies such as hypersonic missiles, directed-energy weapons, and space warfare capabilities.

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Recognizing the critical need for Europe to maintain a competitive edge in defence technologies, the ReArm plan also aims to leverage the European Regional Development Fund (ERDF) and Cohesion Fund (CF) to drive investments in essential defence technologies. Additionally, the Digital Europe Programme (DEP) is expected to expand its focus to include dual-use applications, particularly in the development and operation of AI Gigafactories, which are crucial for scaling up the production of advanced technologies with dual-use capabilities.

As these proposals are set to be presented to the European Parliament for approval in June, the EU is positioning itself to strengthen its defence industry, foster innovation, and enhance its technological capabilities to meet the evolving challenges of modern warfare.

Source: ec.europa.eu