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European Oil Markets
27JUL

Two Ukrainian firms enter Pentagon gauntlet

2 min read
10:27UTC

Two Ukrainian drone makers joined the Pentagon's Drone Dominance Phase 2 field, one partnering Phase 1 leader Skycutter, as Stage 1 opens at Camp Grayling, Michigan.

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EconomicDeveloping

Two Ukrainian drone manufacturers entered the field for the Pentagon Drone Dominance Phase 2 Gauntlet, confirmed on 3 June, with one named as a partner of Phase 1 leader Skycutter⁠1. Drone Dominance is the Pentagon's $1.1bn programme to buy more than 300,000 one-way attack drones by 2027; the Gauntlet is its competitive proving ground, with Stage 1 at Camp Grayling, Michigan.

Skycutter, the London-based startup, won Phase 1 outright flying a Ukrainian-built Shrike 10 Fibre FPV (first-person-view) drone. The two new Ukrainian entrants extend that combat lineage directly into the US field. They arrive as the programme stops looking startup-only: Northrop Grumman was named a preferred payload provider in May, tasked with arming the FPV fleet.

Northrop's payload role reshapes what a startup win is worth, because whoever defines the common payload shapes every airframe that follows, regardless of who builds it. For the Ukrainian firms, the question is whether competing inside the programme secures a procurement foothold that survives a future ceasefire, or whether the primes integrate them on the primes' terms.

Deep Analysis

In plain English

The Pentagon is running a competition called Drone Dominance to find the best attack drones for the US military. Phase 1 was won by a company called Skycutter, a London startup that used a Ukrainian-built drone platform. In Phase 2, the competition has expanded and now includes two Ukrainian companies directly. Stage 1 of Phase 2 runs 8-20 June at a military training base in Michigan called Camp Grayling. The drones are tested on realistic combat tasks. Whatever performs best at the lowest cost gets large procurement orders. The Ukrainian companies are competing alongside American firms and FPV racing specialists who have adapted their skills from the sport.

Deep Analysis
Root Causes

Two Ukrainian firms entering the Phase 2 field reflects a structural change in how the Pentagon perceives combat-validated foreign entrants. Phase 1's acceptance of Skycutter, a London-based firm using a Ukrainian-built platform, normalised the precedent. The Gauntlet's programme structure, administered by Joint Interagency Task Force 401, does not require US-origin hardware, only performance and security-of-supply assurances.

Skycutter's partnership with one of the Ukrainian entrants accelerates the integration: the Ukrainian firm brings combat-hardened FPV design experience while Skycutter provides the US regulatory familiarity and procurement relationships acquired in Phase 1.

Sources:DroneXL
Mentions:Ukraine →Pentagon →United States →Northrop Grumman →Michigan →London →Neros →Camp Grayling →Drone Dominance →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-standard award established the heritage-prime presence in Drone Dominance that frames two Ukrainian firms competing in Phase 2.
Occurred 18 May 2026
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This Event
Two Ukrainian firms enter Pentagon gauntlet
Ukrainian combat-iterated designs are now competing inside a flagship US procurement programme, not just supplying it from outside.
Led to
Pentagon orders 120 drones in five weeks
Skycutter's June Phase 2 entry alongside Ukrainian firms carried through to the final-stage cut.
Occurred 1 Jul 2026
Read story →
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.