EU invests €910 million in defence innovation

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The European Commission has announced an investment of €910 million under the 2024 edition of the European Defence Fund (EDF), aimed at strengthening the continent’s defence innovation capabilities through cooperation and advanced technology development

This latest funding round supports a wide range of research and capability development projects and marks a significant step forward in integrating Ukraine into the European defence ecosystem.

The EDF, the EU’s flagship programme for supporting defence research and development, is designed to improve collaboration among Member States and drive the technological evolution of Europe’s defence industry.

Focus areas: mobility, air defence, counter-drone, and disruptive tech

With a total budget of €7.3 billion for 2021–2027, the EDF focuses on cross-border cooperation, involving companies of all sizes and research organisations across the EU and Norway.

This year’s funding will address critical capability gaps, including force mobility, air and missile defence, and counter-drone systems. A dedicated €45 million has been allocated to support disruptive technologies and innovations with the potential to transform or replace existing defence systems by introducing more effective or cost-efficient solutions.

Key projects: METASTEALTH, EUROSWEEP, and ENGRTII

One of the main initiatives receiving support is METASTEALTH, a project focused on developing next-generation stealth materials. Another important project, EUROSWEEP, will work towards building a standard European autonomous minesweeping system. Meanwhile, ENGRTII brings together over 45 industrial and research partners to develop a next-generation European rotorcraft by 2030.

For the first time, Ukrainian defence industries are actively included in EDF projects.

The idea comes after the EU Defence Innovation Office in Kyiv, which has facilitated deeper collaboration between European and Ukrainian defence sectors. One of the selected Ukrainian projects, Small UAS, will focus on AI-powered aerial systems, highlighting Ukraine’s growing role in the region’s defence innovation network.

The 2024 call also aligns closely with the EU’s broader strategic objectives, including the ReArm Europe Plan and the Joint White Paper on European Defence Readiness 2030. These initiatives aim to enhance pan-European readiness and security by investing in modern, interoperable, scalable defence capabilities.

Strong SME participation in a competitive funding round

A strong focus of this year’s EDF call was also on supporting the EU’s Strategic Technologies for Europe Platform (STEP), with 15 related topics included. Projects meeting the quality threshold received the STEP Seal, which aims to attract additional funding from public and private sources. A full list of STEP-endorsed projects is expected to be published soon.

The response to the 2024 EDF call has drawn 297 proposals involving 625 entities from 26 EU countries and Norway. Small and medium-sized enterprises (SMEs) have played a crucial role, representing over 38% of the participating entities and receiving over 27% of the requested funding.

Out of the total €910 million investment, €369 million is allocated to 39 research projects, while €539 million will fund 23 projects focused on developing new defence capabilities. The selected consortia will now begin preparing grant agreements with the European Commission to finalise them by the end of the year.

As the EDF continues to evolve, its role in shaping European defence’s future is becoming clearer. Through innovation, collaboration, and strategic investment, the EDF is helping to build a more secure and technologically advanced Europe, ready to face the defence challenges of tomorrow.

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