More than $50 million in contracts will be doled out to a group of Canadian companies involved in drone manufacturing and engineering, after the Canadian and Ukrainian governments signed deals to advance access to drones for both countries last week.

The news: On Sept. 10, the Administration of Canada proclaimed it had signed four deals with Ukraine to surge access to drones and drone manufacturing for both countries. Among the deals signed is the Defence Drone Initiative Marketplace (DDIM) Supply Arrangement, a national digital procurement platform to acquire drones and counter-drone systems for the Canadian military and coast guard.

From the source: “Canada and Ukraine forged a new partnership which will equip the Canadian Armed Forces with world-leading drone capabilities, create jobs across Canada, and support Ukraine as they fight to achieve a just and lasting peace,” Carney declared in a press release last week.

In a related development, the context: Among the initial contracts awarded to support the development of the DDIM framework are six Canadian companies who collectively are receiving contracts worth up to $50 million. Those companies include Beonyx out of Quebec, which develops and manufactures uncrewed ground vehicles; AVSS out of New Brunswick and Ontario, which manufactures and assembles drone parachute recovery systems; Volatus Aerospace, a Montréal-based company providing integrated uncrewed aerial systems and drone technologies; Ontario’s Twenty20 Insight, which provides counter-drone systems; Objexis AI, an AI-imbued platform for avionics and mission systems; and Saskatchewan’s Draganfly, which builds and engineers drone hardware and software.

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Final thought: The deal builds upon previous collaborative drone investments between the two nations. In May, Ukraine’s Airlogix unveiled a partnership with Canada’s Sentinel R&D to expand collaboration on drone production. It also comes at a moment of heightened economic and geopolitical uncertainty for Canada as it faces an increasingly hostile neighbour to the south. Unlike Ukraine, Canada does not have a extensive drone arsenal. The deal with Ukraine, alongside broader, accelerating defence spending, positions Canada for  both expanded economic opportunity and establishing a drone fleet of its own.

Furthermore, betaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.

Feature image courtesy of Mark Carney via X