EIC to boost defence startups
The European Innovation Council (EIC) and Horizon Europe research programme are adding support for startups developing dual-use defence and civilian technologies. This is part of a new regulation, the ReArm plan, announced today by the European Commission, to stimulate defence-related investments within the EU budget.
The ReARM plan aims to boost R&D, production and high volume manufacturing by European defence companies.
Member states spent €104bn on defence in 2024, although that was mostly from non-EU suppliers. The plan broadens the scope of the Strategic Technologies for Europe Platform (STEP) to cover defence-related technologies and products, particularly AI, cloud and quantum computing, advanced and secure connectivity, autonomous systems and alternative energy sources.
The first focus is on AI and quantum. NATO has already been doing this, with its first round of investments in startups including AI startup Fractile, material startup Space Forge and quantum clock startup Aquark.
Innovations in drone technology are already dictating the way battles are fought, and the role of robotics is poised to grow, with autonomous ground vehicles taking the lead in early combat operations. German defence startup Helsing is rolling out modular factories ot make drones at sites across Europe.
These machines, such as the THeMIS from Milrem Robotics in Estonia, are already being used for reconnaissance, direct assaults, and logistical support with a standard uncrewed platform.
AI powered military robots are still in early stages of development and there is ample opportunity for Europe to excel in robot weapons and the software required to power them, says a recent white paper.
However, the window of opportunity is very narrow as strategic competitors and rivals are heavily investing in these areas, as well as in new technologically complex segments such as hypersonic missiles, directed-energy weapons, seabed and space warfare. Member States need the European defence industry to be able to design, develop, manufacture and deliver these products and technologies faster and at scale, it says.
STEP is also expected to boost investments in critical technologies for defence under the European Regional Development Fund (ERDF) and Cohesion Fund (CF). This is intended to support the development of cutting-edge technologies essential for the EU’s defence preparedness.
The Digital Europe Programme (DEP) should also expand to include dual-use applications. This will offer crucial support for defence technologies, particularly in developing and operating AI Gigafactories. These factories are vital for scaling up the production of advanced technologies with dual-use capabilities.
The proposals will be put to the European Parliament for approval in June.
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