Wales is set to become the UK’s frontline testing ground for the next generation of autonomous and uncrewed defence technology, following the signing of a landmark £50 million Wales
Defence Growth Deal.
The agreement, signed at Cardiff Castle by Defence Secretary John Healey, Welsh First Minister Eluned Morgan, and Secretary of State for Wales Jo Stevens, positions Wales as a national launchpad for cutting-edge systems such as intelligence, surveillance and reconnaissance platforms and uncrewed aerial vehicles, including one-way drones.
Thousands of skilled jobs are expected to be supported across Wales as the deal accelerates the design, testing and manufacture of advanced technologies spanning land, sea and air. Welsh communities stand to benefit from new high-value engineering roles, while local firms gain unprecedented access to the defence supply chain.
A key element of the deal is expanded access to Ministry of Defence testing facilities, including MOD Aberporth, a long-established hub for flight trials. Working alongside the Civil Aviation Authority and its military counterpart, new and enlarged air corridors across central Wales will allow industry and the armed forces to safely test uncrewed aerial systems at scale.
For Welsh small and medium-sized enterprises, the agreement promises a significant shift. By helping firms secure the necessary clearances and access, the deal removes long-standing barriers to working directly with the Ministry of Defence. This change is expected to reduce reliance on prime contractors, level the playing field with major defence companies and unlock homegrown innovation.
Looking further ahead, the UK and Welsh Governments plan to work together to establish a new Defence Technical Excellence College by September 2027. The proposed institution would train the next generation of defence engineers, ensuring Wales has the skilled workforce needed to support Britain’s rapidly expanding autonomous capabilities.
The investment builds on recent joint commitments to economic growth in Wales, including plans announced earlier this week for seven new railway stations across the country. Together, these initiatives underline a broader push to back Welsh jobs, strengthen regional industry and drive visible change in local communities.
Defence Secretary John Healey MP said: “We pledged a Defence Growth Deal for Wales and this is the UK Government delivering on that commitment.
Wales is central to the defence of the UK and I am proud to launch this new partnership that will transform the nation into a centre for innovation. It will create good jobs and drive growth in Wales.
We’re investing £50 million in this deal to make Wales the UK’s launchpad for uncrewed systems. Expanding test ranges and opening up Welsh skies will help put Britain at the forefront of the autonomous defence technology that our Armed Forces need to fight and win”.
The First Minister of Wales Eluned Morgan said: “Wales will play its part to secure our national defence in an increasingly unstable world.
The aerospace and defence sector in Wales is vitally important to the economy and directly employs over 16,000 highly skilled workers. The backbone of the sector is the huge number of small and medium size companies across the whole of Wales who are the life blood of development and innovation.
The duel use nature of the deal means that its benefits will be felt across the wider Welsh economy. It is vital now that we see this commitment from the MOD filter down to the SMEs quickly and improves the defence capability of the UK”.
Secretary of State for Wales Jo Stevens said: “Today’s deal will shape the future of the defence industry for years to come and will deliver economic growth and thousands of skilled well-paid jobs.
We are building on Welsh expertise and our strong base by investing £50 million so Wales can lead the way in 21st century autonomous defence technology”.
Kevin Craven, CEO of ADS, the trade association representing more than 1800 businesses throughout the UK in aerospace, defence, security and space: “The Defence Growth Deals were a standout feature of the Defence Industrial Strategy – aiming to leverage both well-established and developing strengths of the defence industrial base across the UK. Here in Wales, where the industrial footprint includes particular strengths in unmanned capabilities, world-renowned componentry and cutting-edge dual use technologies, this support is particularly pertinent.
Today’s Wales Defence Growth Deal dovetails the two core motivations of industry and government alike: building UK and effective deterrence capabilities, while providing high-quality, high-value employment that strengthens local communities.
ADS are delighted to have worked in concert with our regional partners, the Ministry of Defence team and of course our brilliant members on how this support can truly unlock Wales’ potential. We look forward to building on this further».
Around 4,000 people in Wales are already employed through MOD industry spending, which exceeds £1 billion with the Welsh defence sector. Under the Defence Growth Deal, that footprint is expected to grow further, with work also beginning on developing sovereign capabilities to strengthen resilience and assurance for critical materials.
The Wales Defence Growth Deal forms part of the wider Defence Industrial Strategy, which aims to unlock the sector’s growth potential. It is underpinned by the largest sustained increase in UK defence spending since the end of the Cold War, set to reach 2.6 per cent of GDP from 2027. Photo: Harland Quarrington/MOD, Wikimedia commons.