Montenegro to launch drone production in partnership with US First batch to be donated to Ukraine

Montenegro plans to begin production of unmanned aerial systems (UAS) in cooperation with the US-based company By Light Professional IT Services LLC, with the initial batch set to be donated to Ukraine. This initiative aligns with the country’s strategic orientation and aims to enhance its domestic defence industry, according to a document from the Montenegrin Government.

"The project will improve the Army’s capabilities within NATO, support Ukraine’s defence needs, and establish Montenegro as a reliable global supplier of cutting-edge defence technologies," the government stated, Caliber.Az reports via foreign media.

The project, valued at up to $15 million, will be financed through US funds allocated to Montenegro’s armed forces under President Donald Trump's administration. However, details regarding the launch date, production site, or employment figures have not yet been disclosed.

On May 29, the Montenegrin Government approved a letter of intent to invest in UAS production and to support the export of such systems from local airports. This letter will soon be signed by Deputy Prime Minister and Minister of Economic Development Nik Gjeloshaj and By Light’s director, Robert J. Donahue. A formal agreement is expected to follow in September.

Montenegro is currently drafting a law on the production of weapons and military equipment, intended to establish a legal framework for manufacturing and exporting military components and hazardous materials. The legislation is expected to be finalized by year-end. The initiative involves eight ministries, the Civil Aviation Agency, and Podgorica Airport.

Production will be carried out in cooperation with both By Light and its partner 4WINDS LLC, which will establish a new company in Montenegro specifically for this venture. The project will also involve Montenegrin and regional companies in testing drone and underwater systems.

Two Montenegrin firms have been identified for potential collaboration: Tara Aerospace from Mojkovci and Poliex from Berane. Tara, in which the state retains a 12.5% stake, specializes in air safety systems and posted €8.6 million in profit last year. Poliex, a producer of explosives, reported profits of over €4.2 million.

By Light offers four drone models, with capabilities suited for both aerial and marine operations. Its most advanced model, the HALO-6 VTOL, can carry up to 27.2 kilograms and has a flight endurance of up to ten hours. The company also provides drone pilot training and holds contracts with various US institutions.

The Montenegrin Government has committed to donating the first series of drones and related protective equipment to Ukraine, citing the ongoing conflict and the urgent need for UAS and secure transportation of hazardous materials.

A NATO member and EU candidate, Montenegro has provided €11.3 million in military aid to Ukraine since the start of Russia’s full-scale invasion in February 2022, has imposed sanctions on Russia, and has taken in Ukrainian refugees.

Montenegro and Ukraine have recently agreed on a draft of a ten-year cooperation pact. Though not yet signed, the agreement includes provisions for mutual support in case of armed conflict, joint defense investments, intelligence collaboration, and assistance with Ukraine’s reconstruction. Similar agreements have been signed by around 30 countries, mostly NATO members.

By Tamilla Hasanova