2nd call for proposals for industrial reinforcement actions under the Ukraine Support Instrument

Expected Impact:

Projects are expected to deliver results aligned with the expected results set out in this call topic and to evidence their contribution through dedicated KPIs defined in the proposal. Expected results include:

• demonstrable and sustainable increase in production capacity in UA for the targeted (counter-)UxS-related production lines;

• measurable reduction of production lead time from order/production decision to delivery in UA;

• improved timely availability and supply of defence products in UA, including increased delivery reliability and readiness of production lines;

• effective cross-border cooperation between UA and EU that enables production ramp-up, integration, qualification and sustainment;

• strengthened Ukrainian industrial base, and, where applicable, operationalised MaaS and dual-use heavy industry conversion pathways for surge.

Proposals shall define, baseline and track KPIs such as: production output (units/month), time-to-rate, lead-time reduction, line availability/uptime, qualified output delivered in UA, MaaS throughput, surge conversion readiness indicators, and workforce trained where relevant—alongside risk-related indicators demonstrating supply robustness and maintainability readiness.

Objective:

This topic aims to reinforce (counter-)UxSs readiness and a sovereign UxSs component base by enabling the rapid industrial reinforcement of Member States and Ukraine for key defence product (including subcomponents) production lines:

• (swarming) UxSs (including FPV variants, modular payload configurations, relay/repeater variants, and AI-enabled/autonomy-enabled UxS integration where relevant) and (swarming) UxS interceptor variants (including intercept solutions to protect critical nodes and logistics routes);

• EW-resilient UxS variants (including fibre-optic controlled UxS, and other GNSS- /RF-denied operational profiles);

• counter-UxSs and EW(-resilient) supporting systems (including counter-UxSs EW function supporting detection/characterisation, jamming/spoofing and spectrum management for friendly UxS operations, terminal navigation, optronic and radar-guided systems).

Actions shall be aligned with the objectives, scope and priorities of this call topic, and implemented as IRA under USI in line with Regulation (EU) 2025/2643. Proposals are expected to ensure timely availability and supply of defence products in Ukraine, by scaling production capacity and industrial readiness for cross-border (EU-UA) industrial set-up in the form of:

• joint production lines;

• reinforcement of specific production capacity and enablement capacity (including integration and validation/testing of alternative control and navigation approaches, production/service and maintenance capability/integration of sensing and effector modules, multi-sensor fusion integration, and dedicated assembly/test capacity/production planning to sustain high monthly volumes, as applicable);

• scale-up of UA systems and ready-to-use production lines (including rapid-cycle modular assembly and re-configuration capacity to adapt to fast-evolving threats and mission profiles);

• MaaS (Manufacturing as a Service) (including rapid small-batch production, fast line changeover, and scalable assembly/test capacity for attritable UxS output);

• dual-use heavy industry conversion options for defence surge (including surge assembly/integration, test, packaging, and supporting infrastructure as applicable).

Applicants may include an optional dedicated Work Package (WP) implementing a supporting action as defined in Article 13(d) of Regulation (EU) 2025/2643, to reinforce the physical and cyber protection of the production capacity targeted by the action, including on security against UxS/drone-enabled threats. The objective is to reduce the risk of disruption, sabotage or interference affecting production continuity, ramp-up and deliveries, complementing the proposal’s overall risk-management approach (notably safety, supply-chain and obsolescence, industrialisation/integration, and maintainability risks) and supporting the achievement of the industrial KPIs set for lead time and capacity.

Scope:

Proposals shall implement Industrial Reinforcement Actions, in line with Regulation (EU) 2025/2643, targeting the specific defence product and production capacities listed under “Objectives pursued”.

Proposals shall demonstrate the criticality of the targeted defence product (including subcomponents) and justify the urgency of reinforcing their availability and security of supply through the proposed industrial reinforcement activities.

Proposals shall include a risk-management approach commensurate with industrial ramp-up in UA (including safety, supply-chain and obsolescence, industrialisation/integration, maintainability, and operational constraints), explain how risks are mitigated to ensure timely availability and supply of defence products in UA, and shall, where relevant include provisions allowing to upgrade quickly the targeted (counter-)UxS based on the evolving lessons identified from the battlefield.

Activities linked to the physical and cyber protection WP may include expert threat assessment, procurement, installation and initial integration of proportionate solutions as well as efforts to connect to a national or European security system for: (i) counter-UxS site protection measures (detection/alerting and other authorised protective measures), and/or (ii) cyber protection measures of production-relevant networks and systems (including monitoring, hardening and secure access) which includes obtaining the European Union Cybersecurity Certification (EUCC) schemes for products used in the IRA activity, as well as acceptance testing and operational set-up necessary for effective deployment, in order to work towards compliance with the NIS2 Directive, where applicable, and alignment with standards such as ISO/IEC 27001 and IEC 62443.

Actions shall not have started before 5 March 2024 and shall not have been completed before the signature of the Grant Agreement (GA). The duration and the starting date of the action will be set out in the GA. The action shall have an indicative duration of three to five years; in any event, it shall be completed no later than 31 December 2033.

Budget

The Commission is considering a total budget of EUR 80 000 000 for the call for proposals.

The maximum EU contribution per funded project will not exceed EUR 10 000 000 allowing several proposals to be funded.

Depending on the number and quality of received proposals and the requested Union financial contributions, the Commission may decide to reallocate budget between calls.

The Commission is considering supporting specifically any optional work packages dedicated to the reinforcement of the physical and cyber protection of the industrial capacity targeted by the action, with a maximum EU contribution of EUR 200 000 per funded project.

Minimum financial size of the actions

The minimum financial size of the action to be eligible for funding is EUR 2 000 000.

Maximum number of legal entities forming part of the consortium

The number of legal entities forming part of the consortium shall not exceed 15 as per Article 34(3)(c) of the Regulation (EU) 2025/2643.