Defence tech start-up Anduril calls for reset of US arms export controls

{"text":[[{"start":9.85,"text":"The head of defence technology group Anduril Industries has called for a “reset” of America’s strict arms-export regime to make it easier for allied nations to produce US weapons.  "}],[{"start":20.65,"text":"Brian Schimpf, chief executive of the California-based group, which was valued at around $60bn last month, said the need for low-cost weapons manufactured at scale meant allies should be enlisted to help boost production capacity. "}],[{"start":34.8,"text":"There is an “export control reset that needs to happen” with other countries “contributing to the total supply”, Schimpf told the FT. "}],[{"start":42.25,"text":"The sale of American arms is strictly controlled by ITAR (International Traffic in Arms Regulations), which means export deals have to be approved and sensitive technologies protected."}],[{"start":54.4,"text":"Schimpf said the “ability to produce is probably the biggest deterrent gap that we have as a western alliance and having nations contribute into that, not just buying, but actually participating in the production of, is actually a very good thing”."}],[{"start":69.05,"text":"By producing US-origin weapons locally, allies could then also tailor them to their own needs, he added. "}],[{"start":null,"text":"

"}],[{"start":75.89999999999999,"text":"Anduril, which counts Peter Thiel’s Founders Fund as a leading backer, is one of the world’s most valuable defence tech companies and is best known for its autonomous weapons and surveillance towers. It has started building its first manufacturing facility in Ohio, dubbed Arsenal-1, which will mass-produce drones and other weapons. "}],[{"start":95,"text":"The proliferation of cheap, effective drones fielded in large numbers in Ukraine and the Middle East has changed the dynamics of warfare. Companies are having to find new ways to manufacture weapons at speed and at scale, often using commercially derived technology. "}],[{"start":111.5,"text":"Yet many of these systems are held to the same tight export restrictions under cold war-era rules designed to protect US technology, often slowing down approvals. US defence companies are increasingly looking to partner or co-develop weapons with European allies. "}],[{"start":128.2,"text":"While countries would still buy high-end weapons, such as the F-35 fighter jet, under the traditional export-control regime, Schimpf said the advent of modern warfare and use of commercial technologies also required a less restrictive approach. “It’s not clear the protection goals are . . . correctly framed anymore.”"}],[{"start":147,"text":"Schimpf said he believed at the “political level” there was openness to a different approach in the US administration. President Donald Trump in February announced plans to reset the arms trade regime."}],[{"start":158.25,"text":"The company is seeking to expand in Europe although many governments are looking to shore up their national industries and reduce their reliance on US-made weaponry. "}],[{"start":167.3,"text":"Anduril, said Schimpf, would consider producing its weapons in Europe, potentially including a large-scale Arsenal-2 facility that could harness the continent’s manufacturing talent. "}],[{"start":177.10000000000002,"text":"The company, he added, had deliberately built in-house most of the designs for key components of its weapons, enabling it to tap into local supply chains very easily. "}],[{"start":187.10000000000002,"text":"“We have designed it for localisation from the beginning.”"}],[{"start":190.20000000000002,"text":"Anduril last year signed a partnership with German defence giant Rheinmetall to design and manufacture variants of the US group’s Barracuda cruise missile and Fury autonomous air vehicle. Schimpf said the work was “still ongoing”. "}],[{"start":204.8,"text":"The conflicts in Ukraine and in the Middle East and the revolution in drone warfare have sent valuations of defence tech companies as investors have ploughed money into the nascent sector. "}],[{"start":216.10000000000002,"text":"Anduril in May raised $5bn in a deal that nearly doubled its valuation to $61bn. The company has secured several contracts with the Pentagon as well as allied governments. It roughly doubled its workforce and revenues over the past year, reaching $2.2bn in 2025. Revenues are projected to exceed $4.3bn this year, but the group remains lossmaking. "}],[{"start":242.10000000000002,"text":"Schimpf ruled out an IPO this year, although he believed the start-up would be two to three times as valuable as it is now if it were public. There was undoubtedly a “hype cycle” in defence tech, he noted, adding: “There’s some crazy stuff going on.” "}],[{"start":267.1,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781420583_7367.mp3"}