22JUN

Drone Dominance Gauntlet opens 8 June

1 min read

13:56UTC

The Pentagon's Drone Dominance Phase 2 Gauntlet Stage 1 runs from Monday 8 June to Saturday 20 June at Camp Grayling, Michigan, pitting startups, FPV racers and two Ukrainian firms against a programme a heritage prime now shapes.

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The Pentagon Drone Dominance Phase 2 Gauntlet Stage 1 opened on Monday 8 June at Camp Grayling, Michigan, running until Saturday 20 June⁠¹. The field includes FPV (first-person-view) racing veterans, two Ukrainian entrants, and the Phase 1 standouts Skycutter, which scored 99.3 out of 100, and Neros on 87.5. Phase 1 had made the programme look startup-only.

That picture changed when Northrop Grumman was selected to arm 200,000 FPV attack drones with a common payload by 2027. The Gauntlet now runs inside an architecture a heritage prime helps define, even as hobbyists and small firms supply the airframes. Britain faces the same question in parallel, with BAE Systems, Tekever and Thales drawn into the Project NYX concept-demonstrator phase.

Early preferment compounds. The same dynamic put Anduril's Lattice at the centre of US counter-drone command and control; whoever holds the interface shapes everything built to it. Whether Phase 2 lets a startup, or a Ukrainian entrant, place against that backdrop is the open test Stage 1 begins to settle when it closes on 20 June.

Deep Analysis

In plain English

The Pentagon is spending $1.1 billion to buy more than 300,000 attack drones by 2027. These are small aircraft that fly to a target and destroy themselves on impact, similar to what Ukraine and Russia have been using in the war. The Pentagon called its procurement programme Drone Dominance and is running a competitive fly-off to select suppliers. Phase 1 selected 11 vendors. Phase 2 is now underway, with Stage 1 running 8-20 June at Camp Grayling, a military training base in Michigan. Competitors include Phase 1 winner Skycutter, Phase 1 runner-up Neros, two Ukrainian firms, and FPV drone-racing specialists who have adapted their sport skills for military use. Northrop Grumman, a major traditional defence company, was separately chosen to design a standard warhead and fuze module that all the competing drones will need to carry.

Source Landscape

Northrop Grumman's payload-standard role at roughly $5,000 per drone across the 200,000-unit initial tranche creates a minimum revenue floor of $1B for Northrop regardless of which vendors win the Phase 2 platform competition. This separates the heritage-prime revenue stream from the startup competition entirely: Northrop earns on volume, startups earn on selection.

The Camp Grayling venue signals the test conditions: Michigan National Guard facilities provide GPS-jamming, communications-denial, and electronic-warfare red-team environments that replicate contested Eastern European battlespace. Competitors that qualified in Phase 1 with fibre-optic control, including Skycutter, have an advantage in jammed environments that Phase 2 is designed to validate at scale.

Sources:DroneXL

Mentions:Northrop Grumman →Project NYX →Michigan →Lattice →Tekever →Ukraine →Russia →Thales →BAE Systems →Anduril →Pentagon →Camp Grayling →Drone Dominance →Neros →Skycutter →

First Reported In

Update #11 · Ukraine starts exporting the factory

DroneXL· 7 Jun 2026

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Causes and effects

Caused by

Northrop banks two drone awards in one week

Northrop Grumman's payload selection is the structural context for Phase 2 Gauntlet Stage 1 opening.

Occurred 18 May 2026

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UK launches Apache drone wingman trial

Project NYX's four-company concept-demonstrator phase is the UK parallel to the US Phase 2 Gauntlet opening — both represent the heritage-prime vs startup question crystallising simultaneously.

Occurred 15 May 2026

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This Event

Drone Dominance Gauntlet opens 8 June

Phase 2 begins answering whether traditional primes crowd out the startups that defined the programme or simply absorb them.

Led to

Pentagon's drone buy lands a third short

Phase 2 Gauntlet Stage 1 opening at Camp Grayling (event 3993) is the direct follow-on to the Phase 1 shortfall, introducing the compressed price caps and Chinese-component deadline.

Occurred 7 Jun 2026

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Drone Gauntlet now judges the parts

Gauntlet Stage 1 opening on 8 June was the event whose close on 20 June is extracted here; the new beat is the results (49 companies/79 drones) and the Gauntlet II component bar.

Occurred 20 Jun 2026

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Pentagon orders 120 drones in five weeks

Stage 1 opened at Camp Grayling in early June, testing the 49 companies later cut to 19.

Occurred 1 Jul 2026

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Gauntlet II sets five-week build sprint

Gauntlet II's Fort Carson sprint is the next stage of the programme that opened at Camp Grayling on 8 June.

Occurred 3 Jul 2026

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Different Perspectives

Cross-border power traders

The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.

EDF

River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.

Gasunie

TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.

German gas-fired generators

Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.

European Commission (DG Energy)

Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.

Spain's LNG terminal operators

Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.