Camilla Jessen
Ukraine’s fast-growing defense industry now covers nearly half of its military needs—despite Russian strikes and limited funding.
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Ukraine’s weapons production reached over $10 billion in 2024, a threefold increase from the year before and ten times higher than in 2022, according to the Ukrainian Institute for the Future, cited by The Economist.
The growth involves 800+ companies and 300,000 workers, with 2025 output expected to hit $15 billion—though the full potential of $35 billion remains out of reach due to funding limitations.
Support from European allies could help unlock that capacity.
“Some production facilities have been hit five times or more, yet they continue to operate,” said Andriy Zagorodnyuk, former defense minister. He estimates Ukraine now produces nearly half of its military needs.
Drone Output Set to More Than Double
Drone production is a key part of Ukraine’s defense push.
The country plans to manufacture 5 million FPV (first-person view) drones in 2025—more than double the 2 million made last year. These smaller drones have become central to frontline tactics.
In addition, Ukraine aims to produce:
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30,000 long-range drones capable of striking targets deep within Russia
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3,000 advanced cruise missiles, including the Long Neptune with a 1,000 km range
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New types of “rocket-drones”, such as the Palianytsia, powered by turbojets
However, experts like missile analyst Fabian Hoffmann caution that some of the missile production goals may exceed Ukraine’s current capabilities.
Ukraine has made major strides in electronic warfare (EW), reportedly outpacing both Russian and European systems in effectiveness.
Among the most significant developments is the Lima system, designed to disrupt the trajectory of Russian guided aerial bombs—an area where Ukraine had previously struggled.
Former German defense official Nico Lange also noted that Ukraine’s innovation and deployment speed in EW is “faster and more flexible” than traditional Western procurement models.
Air Defense Still a Critical Gap
While Ukraine’s defense production is accelerating, air defense systems remain in short supply. The country’s growing need cannot be met through imports alone, according to officials.
To address this, Ukraine has begun developing its own systems.
In January, Commander-in-Chief Oleksandr Syrskyi confirmed that domestic production is underway. Additionally, Ukraine has partnered with Thales, the French firm behind the SAMP-T air defense system, in a joint venture aimed at boosting capabilities.
On February 8, Ukrainian President Volodymyr Zelenskyy met with Admiral Giuseppe Cavo Dragone, Chair of NATO’s Military Committee, to present Ukraine’s progress in long-range weapons development and discuss strategic defense cooperation.
