A £50m defence investment agreement has been signed to position Wales as a hub for autonomous military technology, with ministers promising high-skilled jobs, improved access to defence contracts for smaller firms and the creation of a new engineering college.

Landmark defence deal targets autonomous capability

The £50m Wales Defence Growth Deal was signed at Cardiff Castle by Defence Secretary John Healey, Wales First Minister Eluned Morgan and Secretary of State for Wales Jo Stevens.

The agreement aims to strengthen the UK’s capabilities in autonomous and uncrewed defence systems, including platforms used for intelligence, surveillance and reconnaissance operations.

Officials said thousands of skilled workers in Wales would be involved in designing, testing and manufacturing new technologies as the region becomes a launchpad for advanced defence innovation.

Wider access to MOD facilities

A central element of the deal is improved access for industry to Ministry of Defence testing facilities in Wales, including those at MOD Aberporth.

The UK government will also work with the Civil Aviation Authority to expand air corridors across central Wales, allowing more testing of uncrewed aerial systems by both industry and the military.

Ministers said the move would help speed up development cycles while building regional expertise in emerging defence technologies.

Support for Welsh SMEs

The agreement also aims to remove long-standing barriers for Welsh small and medium-sized enterprises seeking defence work.

Officials said SMEs will be supported in gaining security clearances and access to classified contracts directly, rather than relying solely on large prime contractors.

The approach is intended to “level the playing field” and unlock homegrown innovation within Wales’s defence supply chain.

Defence engineering college planned

As part of the deal, the UK and Welsh governments intend to establish a Defence Technical Excellence College by September 2027.

The institution will train engineers and technicians to support Britain’s expanding autonomous defence capabilities, while helping build a long-term skills pipeline for the sector.

Industry reaction

Kevin Craven, chief executive of ADS, said defence growth deals were a key feature of the UK’s Defence Industrial Strategy and were designed to strengthen regional industrial bases.

“Here in Wales, where the industrial footprint includes strengths in unmanned capabilities and advanced component manufacturing, this support is particularly pertinent,” he said.

Craven added that the deal aligned government and industry goals of strengthening deterrence while creating high-value employment in local communities.

Broader economic push

The announcement follows wider joint UK-Welsh infrastructure initiatives, including plans for seven new railway stations intended to boost construction jobs and regional development.

Ministers said the defence deal demonstrated a commitment to building advanced manufacturing capability outside traditional defence hubs while creating skilled employment opportunities across Wales.

For more articles like this, visit our Leadership channel