Ukraine moves toward deal for US drone factory

Ukraine and the United States are moving forward with plans to jointly produce Ukrainian-designed drones in the US, President Volodymyr Zelenskyy said, as Washington seeks to draw on technology developed during more than four years of war with Russia.

Speaking in an interview with US political commentator Laura Loomer broadcast on July 24, 2026, Zelenskyy said the proposed partnership would include a factory and drone production lines in the United States.

“We will build a great factory in the United States,” Zelenskyy said. “We want to have lines of production.”

Zelenskyy described the planned cooperation as a “win-win” arrangement that would combine Ukraine’s rapidly evolving drone technology with US manufacturing and defense capabilities.

Ukraine and the United States have reportedly signed a statement of intent establishing a framework for deeper cooperation on unmanned systems. The document is an initial step rather than a final production contract, and the details of a broader agreement remain under negotiation.

A source familiar with the talks told Reuters that officials were still working through the terms ahead of Zelenskyy’s scheduled meeting with US President Donald Trump in Washington on July 28, 2026. The White House confirmed that the leaders were expected to meet.

The negotiations mark a notable change in the defense relationship between the two countries. Ukraine has depended heavily on American weapons and financial assistance since Russia launched its full-scale invasion in February 2022. The proposed drone partnership would see battlefield-developed Ukrainian technology transferred in the opposite direction for production and possible use by the US military.

Ukraine has become one of the world’s largest developers and users of unmanned aircraft, producing millions of drones annually and modifying designs quickly in response to changing Russian defenses and electronic warfare tactics.

Zelenskyy said Ukrainian long-range drones can now fly more than 3,000 kilometers, or approximately 1,864 miles, with further increases in range under development.

The proposed manufacturing agreement is linked to the Pentagon’s effort to acquire large numbers of inexpensive unmanned aircraft more quickly.

Ukraine has agreed to export drones to the United States for evaluation under the Pentagon’s Drone Dominance program, according to Reuters. Six Ukrainian companies have reportedly received permission to export approximately 100 drones each, although the companies and aircraft types involved have not been publicly identified.

The exports would allow the US military to assess systems developed and modified under combat conditions before any larger manufacturing program begins.

The Pentagon launched Drone Dominance to accelerate the acquisition of low-cost unmanned systems and reduce the time required to move new designs from development into operational units. US defense officials have increasingly pointed to Ukraine’s experience as evidence that traditional procurement cycles cannot keep pace with the rapid evolution of drone warfare.

Ukraine has already established or announced joint drone-production arrangements with several allied countries.

Kyiv and Denmark signed a drone agreement in July 2026 that allows Ukrainian defense companies to establish production with access to partner-country markets. Ukraine has also announced joint-production initiatives with Canada, Norway, the Netherlands, Estonia and Germany.

The Ukrainian government has also streamlined the process for transferring drone technology, weapons and technical documentation to countries participating in its international Drone Deal framework. The revised process is intended to reduce approval times to as little as 30 days.

Ukraine’s Ministry of Defense said in June that Ukrainian manufacturers supplied 95% of the drones procured for the country’s armed forces. Nearly 485,000 unmanned systems and related items had been delivered through the government’s DOT-Chain Defence marketplace during the first five months of 2026.

No location, construction timetable, production capacity or participating manufacturers have been announced for the proposed US factory.

It also remains unclear which Ukrainian drone designs would be built in the United States or whether the aircraft would be intended primarily for the US military, Ukraine or export customers.

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Ukraine plans to build a drone manufacturing plant in the United States.

Kyiv, Ukraine – Ukrainian President Volodymyr Zelenskyy announced that his country intends to establish a drone manufacturing plant in the United States, a move aimed at strengthening defense cooperation between Kyiv and Washington and increasing production capacity to meet the needs of the Ukrainian armed forces.

Zelenskyy explained that the project is part of a broader strategy to develop Ukraine’s military industries in partnership with its allies, noting that drones have become a crucial element in modern military operations, especially given the ongoing conflict with Russia.

He added that establishing the plant will accelerate the production of advanced military technologies and facilitate the exchange of expertise with American companies, thereby enhancing Ukraine’s ability to address battlefield challenges and develop defensive and offensive systems using drones.

The announcement comes as the United States continues to provide military and logistical support to Ukraine, amid efforts to strengthen defense industry cooperation between the two countries, ensuring a sustained supply of necessary military equipment in the coming phase.

Observers believe the project reflects the growing strategic partnership between Kyiv and Washington and underscores the increasing importance of drones in modern conflicts, particularly as the Russian-Ukrainian war continues and enters a phase heavily reliant on advanced military technology.

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Manna Aero launches US expansion and opens Tulsa manufacturing hub | Ukraine news

An Irish drone startup aims to rapidly scale in the US with a Tulsa manufacturing hub and plans to hire hundreds of workers. Anticipate regulatory milestones and local impact.

Manna Aero, an Irish startup in autonomous drone delivery, plans to broaden its presence in the U.S. market. Founder and CEO Bobby Healy told TechCrunch that the company is currently gearing up for a large-scale American expansion.

After raising $50 million in venture funding in April, Manna Aero announced the creation of a new operations and manufacturing center in Tulsa, Oklahoma. The company expects the center to provide around 1,000 jobs over the next few years. Construction of the plant has already begun, and production is planned to start in about a year.

After construction begins, the team will focus on scaling the operations side to around 200–300 people over the next 12 months. The speed of hiring at the plant will depend on growth outside Tulsa, as the company is considering six other U.S. cities. If the strategy proves successful, Manna intends to begin expanding into these cities by the end of 2027.

Plan for expansion in the U.S. market

The main goal is to position Manna Aero as one of the leading drone-delivery players in the United States, competing with Zipline, Amazon, and Wing from Google.

It’s the market size, consumer behavior, and the fact that aggregators (DoorDash, Uber Eats) have consolidated the market and run it so well. The United States has the market that everyone wants.

– Bobby Healy

Manna’s drone model envisions using automated, remotely piloted aircraft that do not land on the ground. The package descends via a cable – the same approach used by Wing and Zipline. The company has adopted a hybrid business model: a pay-per-flight delivery service along with various routes to reach its goal through partnerships with DoorDash, Deliveroo, and Uber Eats in Europe, as well as direct deals with companies and its own consumer app.

Currently, Manna’s headquarters are in Ireland, where its research, administrative, and manufacturing units are concentrated. However, the company paused drone delivery operations in Ireland last month due to a lack of regulatory norms that would enable scaling.

Instead, the startup is directing its resources and capital to the United States. The company has named former Ryanair chief marketing officer Kenny Jacobs as its executive chairman and president to spearhead the expansion.

Healy emphasized that the policies of the Trump administration and the Federal Aviation Administration have given the industry a “turbo boost” in the country, and that is reflected in investments.

According to Healy, the growth of Amazon, Wing, and Zipline over the past year demonstrates the positive impact of such regulatory support. “We may be a little behind the curve, but we will catch up quickly,” he said.

Although Manna has roots in Ireland, its activity in the U.S. market is growing: in 2023 the company began operating in the AllianceTexas Mobility Zone near Dallas, Texas, as part of Hillwood’s planned cluster development. According to Healy, Manna has expanded its presence in the Dallas–Fort Worth area and plans to continue scaling there over the next year.

The growing footprint in the United States comes amid a friendly regulatory environment and rising demand for drone delivery, creating favorable conditions for rapid growth for the startup.

In summary, Manna Aero’s expansion into the United States unlocks new opportunities for manufacturing and employment, while testing regulatory and market conditions in the U.S., where competition for drone-delivery market leadership centers around players such as Zipline, Amazon, and Wing.

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US manufacturing activity rose in June, factory hiring fell to six-year low | Ukraine news

Stronger orders mask mounting cost pressures and job cuts in factories, raising questions about whether production gains can sustain without easing input inflation.

Washington, June 23 – activity in the U.S. manufacturing sector rose again in June: companies front-loaded new orders in response to anticipated shortages and rising prices, but factory employment fell to a six-year low due to rising operating costs tied to the conflict in the Middle East.

According to S&P Global, the preliminary Manufacturing PMI rose to 55.7 this month – the highest since May 2022, while May stood at 55.1. A reading above 50 indicates expanding production, which accounts for about 9.4% of the economy. Economists surveyed by analysts expected the manufacturing PMI to slip to 54.8.

Growth in manufacturing was accompanied by an uptick in the services PMI to 51.3 from 50.7 in May, lifting the U.S. composite PMI according to S&P Global to 52.2 from 51.5 last month. The rise in the services PMI is partly linked to the FIFA World Cup, hosted by the United States, Canada and Mexico.

The manufacturing PMI index has risen for the fourth month in a row, partly due to companies replenishing inventories in case of shortages and rising prices.

The war between the United States, Israel and Iran, which has been ongoing for four months, is weighing on global supply chains and boosting prices for oil-related goods, as well as for aluminum and fertilizers.

Last week the United States and Iran signed an interim agreement aimed at ending the war. On Monday, Vice President JD Vance said that talks with Iranian officials in Switzerland laid a “good foundation” for a final peace agreement, despite tensions over the Hormuz Strait and Lebanon.

Layoffs in manufacturing have reached their highest level since 2009, excluding the pandemic, underscoring concerns about the durability of the recent demand growth amid rising input costs.

– Chris Williamson

Private-Sector Employment Remains Low

Overall private-sector employment remained subdued for the second month in a row. This contrasts with the Labor Department data showing private payroll growth rebounding over the last three months. For the three months ended May, private nonfarm payrolls averaged 166,000 jobs per month, versus only 62,000 in the same period in 2025. Analysts surveyed note that private surveys do not always accurately forecast official employment data.

The manufacturing new orders index, according to S&P Global, rose to a more than four-year high for the month. The rise was attributed to demand being temporarily supported by warnings of potential supply disruptions and higher prices due to the war. Meanwhile the inventories index reached its highest level in 13 months.

Additionally, supplier lead times lengthened to levels last seen in August 2022. Before the war, suppliers had been constrained by broad tariffs imposed by the Trump administration. While a drop in oil prices from multi-year highs at the outset of the conflict restrained further increases in input costs, inflation at factory sites remained high.

The Prices paid by factories for inputs fell to 71.2 from 75.3 in May. Manufacturers continued to pass costs on to consumers, though the pace of price declines slowed. The Prices received by manufacturers for goods produced fell to 61.0 from 63.1 in May. The decline was partially offset by gains in the services sector, and the overall index of prices received by the private sector stayed at 58.6. The overall input prices index fell to 62.1 from 62.5 in May.

Elevated readings reflect economists’ expectations of sustained high inflation and the likelihood of the Federal Reserve raising interest rates within the year amid rising inflation risks.

Current data indicate the industrial sector is behaving flexibly: demand and inventory management support output, but weaker employment in manufacturing and rising costs remain key concerns for the U.S. economy.

In summary, shifts in demand and supply are shaping today’s production dynamics: on one hand, recovery and inventories; on the other, higher costs and weak employment, underscoring the need for steady anti-inflationary policy and careful monitoring of the labor market in the coming months.

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US Administration Plans Cuts to Key Industrial Grants Impacting Rust Belt Manufacturing | Ukraine news

The central thrust of the United States’ economic policy under the “America First” banner is to revitalize domestic manufacturing. However, the Trump administration plans to cut one of the key programs that funds the largest industries, including a city at the heart of the Rust Belt – the hometown of Vice President JD Vance.

A $500 million grant from the Biden administration was designated for the Cleveland-Cliffs steel company in Middletown, Ohio, to modernize aging blast furnaces; another $75 million was allocated for a similar project in Pennsylvania.

New furnaces powered by hydrogen, natural gas, and electricity – rather than coal – were meant to extend the plant’s life and secure the company’s future.

But these grants, which were to create more than 100 permanent jobs and 1,200 construction jobs just in Middletown, according to internal administration documents obtained by CNN, are slated to be canceled.

Representatives from the Department of Government Efficiency participated in deciding which programs to keep and which to cut, according to two people familiar with the situation.

“An unelected billionaire who made his fortune on government contracts should not be able to unilaterally stop these programs.”

– Marcy Kaptur

Energy Department spokesperson Ben Ditterich stated that “no final decisions have yet been made” regarding funding, and that “several plans are being considered.”

The Energy Department froze billions of dollars in grant programs during the Biden administration for months, reviewing them and determining which to cut. The $6.3 billion program that financed equipment modernization for Cleveland-Cliffs and other large companies could be cut by nearly half according to internal CNN documents.

Experts warn that such cuts could have a chilling effect on American industry amid a tariff war led by Trump that is undermining markets and supply chains.

“The entire point of OCED and the $6.3 billion grant programs is to invest in companies and industries that have not received funding for decades – steel and cement.”

– a former DOE employee

Samira Fazili, Deputy Director of the National Economic Council under the Biden administration, notes that reductions could deal a serious blow to the United States’ core industries, especially given the economic uncertainty caused by tariffs.

She emphasizes that instead of cutting public investments, strategic investments should be undertaken to preserve manufacturing and strengthen the country’s competitiveness.

Ultimately, experts call for a measured approach: carefully chosen government investments can preserve jobs and the United States’ industrial capacity, particularly in regions tied to essential industries.

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