Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
European Energy Markets
22JUN

Switchblade 400 wins Army LASSO at $1.2bn ceiling

4 min read
13:56UTC

The US Army selected AeroVironment's Switchblade 400 under the Low Altitude Stalking and Strike Ordnance OTA on Monday 4 May. The Army is requesting $110 million in FY2027 procurement with a planned ceiling of approximately $1.2 billion through FY2031.

EconomicDeveloping
Key takeaway

Anti-tank loitering reach jumped from 10 km to 65 km in one Army selection.

The US Army selected AeroVironment's Switchblade 400 under the Low Altitude Stalking and Strike Ordnance (LASSO) Other Transaction Authority on Monday 4 May⁠1. The Army is requesting $110 million in LASSO procurement for fiscal year 2027 (FY2027) with a planned ceiling of approximately $1.2 billion through FY2031⁠2. Annualised, that funds roughly 200 to 400 Switchblade-class munitions a year against the Pentagon's 300,000-drone procurement target. AeroVironment declined to disclose the prototype contract value.

Switchblade 400 has a 65 km range, 35-minute endurance, and an all-up weight of 39 lbs, deployable by a single soldier in under five minutes with day-night electro-optical / infrared (EO/IR) sensors and autonomous target recognition. In practice, that pulls Russian armoured columns inside loitering reach from 6.2 miles to over 40. The 400 sits between the existing Block 2 SB 600 and SB 300 already running under an $1 billion August 2024 contract and a $186 million February 2026 delivery order. AeroVironment now operates SB 300, SB 400, and SB 600 simultaneously inside Army programmes, the broadest US loitering munition coverage on offer.

The Pentagon's Lethality Prize and the Mountain Horse Solutions kinetic win sit alongside this award inside the same Gauntlet II munitions architecture. Anti-tank loitering reach jumping from 10 km to 65 km changes which echelon owns the deep-strike fires problem: brigade rather than divisional artillery.

A $1.2 billion ceiling spread across six fiscal years averages $200 million annually, modest against the $54.6 billion DAWG line and well below the volume the Pentagon's stated 300,000-drone target would imply. The annual run rate places LASSO inside the procurement-frame envelope rather than the production-rate envelope that DAWG would otherwise fund.

Deep Analysis

In plain English

A loitering munition is a drone that can fly to an area, circle while searching for a target, and then dive to destroy it. Think of it as a guided missile that can wait. The Switchblade 400 is an American version that a single soldier can carry and launch, and it can fly 65 km, more than 40 miles, before finding and hitting a target. The US Army has now chosen it as the standard weapon for this role, with up to $1.2 billion available to buy them through 2031. In practical terms, this means American ground troops could attack enemy tanks from a distance that was simply not possible with previous weapons, without needing aircraft or artillery.

Deep Analysis
Root Causes

The 65 km selection over shorter-range alternatives traces to two constraints absent from previous loitering-munition competitions.

First, the brigade-echelon targeting gap. The Army's FY2027 doctrine update identified a specific gap: no organic weapon could engage armoured vehicles beyond the reach of line-of-sight optics but inside the range envelope where Air Force close air support assets face unacceptable crew risk from integrated air defences. The 65 km figure was not chosen arbitrarily: it is the minimum range that closes that gap while staying inside the radio-link budget of man-portable ground-control equipment.

Second, AeroVironment's head start from the Block 2 SB 300 programme. The LASSO solicitation explicitly valued prior-programme investment and fielded-system data from the $1 billion August 2024 contract. AeroVironment enters LASSO with two years of Army range safety, logistics, and maintenance data already on file. Competitors starting from a clean sheet face a 12-18 month head start disadvantage that the OTA vehicle does not fully equalise.

First Reported In

Update #8 · The week defence-AI got priced

AeroVironment· 10 May 2026
Read original →
Causes and effects
This Event
Switchblade 400 wins Army LASSO at $1.2bn ceiling
The Switchblade 400 sextuples anti-tank loitering reach from 10 km to 65 km, changing the brigade combat team strike envelope. AeroVironment now operates SB 300, SB 400, and SB 600 simultaneously inside Army programmes, the broadest US loitering munition coverage on offer. The $1.2 billion ceiling spread across six fiscal years averages $200 million annually, modest against the $54.6 billion DAWG line.
Different Perspectives
Cross-border power traders
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
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
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
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)
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 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.