Nero Secures Agreement to Deploy 6,000 Domestically Produced Drones in Ukraine
Updated Article:
American company Neros is making waves in the drone market, sealing a deal to supply 6,000 FPV attack drones to Ukraine within six months. This contract marks a record-breaking pace for any U.S. producer, serving as part of a larger international effort to equip Ukraine with military drones.
Creating large numbers of FPVs at a rapid pace has proven to be a formidable challenge for U.S. producers. However, Neros thrives on this challenge, having firmly established it as a cornerstone of their business model.
"One of the first things we did when we started the company was go to Ukraine," Neros co-founder and CEO Soren Monroe-Anderson told me. "They told us if we couldn't produce 5,000 drones per month, we were essentially useless. So we set out with that goal in mind."
This ambition contrasts starkly with the Pentagon’s Replicator program, which aims to deliver just 3,000 drones over two years.
Cutting Chinese components out of the equation proved to be a significant hurdle for drone manufacturers. Chinese firms dominate the market, with DJI, a Shenzhen-based company, estimated to produce around 70% of all consumer drones. Even some U.S. manufacturers still rely on Chinese components, a challenge that left Skydio's deliveries in jeopardy when Chinese battery suppliers enforced an embargo.
Fortunately, Neros has managed to sidestep this issue, largely thanks to Monroe-Anderson and co-founder Olaf Hichwa's extensive background in professional drone racing. They've established partnerships to scale up production lines for critical components—such as motors and cameras—outside of China.
Avoiding reliance on Chinese components, however, comes at a price. Monroe-Anderson laments the cost difference between Chinese and Western-manufactured drone components, resulting in more expensive U.S. made drones. Yet, he remains optimistic, noting that technology can be mastered anywhere with the right will.
"In a lot of ways, the ground control system is more complicated than the drone itself," Monroe-Anderson said. "But we build those in-house."
Neros' aggressive vertical integration strategy means complete manufacturing control, from design to assembly, eradicating reliance on third-party manufacturers. As a result, Neros can manufacture drones efficiently, albeit at a premium compared to Chinese drones.
The challenge of producing high quantities fast is not only about cutting out Chinese components; it's also about reshaping manufacturing processes to accommodate the U.S. military's far-reaching demands.
Historically, the U.S. has traditionally relied on small, exclusive drone manufacturers. Companies capable of producing a few thousand drones annually are typically limited in scale. The immediate need to supply Ukraine with drones on such a massive scale was uncharted territory.
"Any drone company that started before the full-scale invasion of Ukraine and had the DoD as their primary customer had never been handed a serious demand for large quantities," Monroe-Anderson emphasized.
As demand increased, underperforming production lines became apparent. Companies like Anduril swiftly moved to establish hyperscale manufacturing facilities.
When drone designs were adapted for one-way attack missions, the results were expensive single-use systems. The DoD's unwillingness to lower costs for extensive military applications drove up their expense.
To meet the rigorous demands of mass production, Neros started with a clean slate, specifically designing its products with scalability in mind. The company restructured the drone and factory design to reduce hobbyist quirks, resulting in a more manufacturable product while maintaining its modularity and repairability.
The fruit of this innovative approach is the Archer, an advanced FPV attack drone capable of flying long distances and overcoming radio frequency jamming. Despite its powerful capabilities, the Archer comes at an affordable price, making it an accessible choice for military forces worldwide.
Monroe-Anderson admits that while Neros is making strides in the drone market, they still have a long way to go to surpass Russia's drone production prowess. "Our adversaries can produce millions of FPVs," he said. "Right now, the U.S. military is way behind most of the world in terms of drone utilization. We want to fix this."
- The record-breaking deal secured by Neros involves supplying 6,000 FPV attack drones, a type of kamikaze drone, to Ukraine within six months.
- Neros' reliance on FPV technology is not just for military applications; they also utilize it for reconnaissance purposes, showcasing their versatility in drone manufacturing.
- The high production rate of FPV drones, including attack drones, by Neros is a testament to their efficient manufacturing processes, which have a significant rate of reliability.
- The fact that Neros can produce attack drones with a long range and resistance to radio frequency jamming at an affordable price, setting them apart from competitors, is a major advantage in the drone market.
