A $15M defense deal positions Montenegro as a future NATO-grade drone supplier
PODGORICA, June 4, 2025 – Montenegro is preparing to launch the production of unmanned aerial systems (UAS) in partnership with US defense firm By Light, and the first drone batch will be donated to Ukraine, according to an official government document.
This initiative aligns with Montenegro’s strategic defense goals, aiming to bolster its domestic defense industry, enhance its NATO military interoperability, and support Ukraine’s military efforts amid the ongoing war with Russia.
“This will strengthen Montenegro’s position as a reliable global supplier of modern defense equipment,” the government stated.
US-backed initiative under Trump administration
The deal, valued at up to $15 million, is reportedly funded through a US Department of Defense allocation for Montenegro, backed by the Trump administration.
The US Embassy in Podgorica emphasized that such investments highlight Montenegro’s commitment to NATO, noting:
“As President Trump stated, all allies should pledge to spend 5% of their GDP on defense at the Hague Summit,” exceeding NATO’s current 2% requirement.
Letter of intent signed, full contract due in September
On May 29, Montenegro’s government approved a letter of intent for UAS production and drone export infrastructure. The agreement is expected to be formally signed in September by Deputy Prime Minister Nik Gjeloshaj and Robert J. Donahue, CEO of By Light.
The production facility’s location and operational details—such as start date or employment figures—have not yet been disclosed. A new law regulating arms manufacturing and hazardous materials is under development and expected by year-end.
Local companies to support tech and testing
The project includes collaboration with local and regional tech partners, including Tara Aerospace (Mojkovac) and Poliex (Berane), both formerly state-owned companies that now operate privately and have shown strong financial results in recent years.
Two US companies—By Light and its partner 4WINDS LLC—will establish a local enterprise in Montenegro. They’ll develop and test both aerial and underwater drone systems using regional resources.
Drone specs: HALO-6 can fly up to 10 hours
By Light’s website lists four types of drones, including the HALO-6 VTOL, which features a 27.2 kg payload and up to 10 hours of flight time, with low noise and multi-environment operability (air and water). The company also provides drone pilot training and has secured multiple US federal contracts.
Direct support for Ukraine
Montenegro has pledged to donate the initial drone units to Ukraine, citing the urgent need for reconnaissance and delivery systems on the battlefield.
“The ongoing conflict in Ukraine highlights the urgent need for UAS and secure transport of hazardous materials,” the Montenegrin government noted.
Since Russia’s full-scale invasion in February 2022, Montenegro—a NATO member and EU candidate country—has provided €11.3 million in military aid to Ukraine, welcomed refugees, and imposed sanctions on Russia.
Long-term defense cooperation on the horizon
Montenegro and Ukraine have also agreed on the draft of a 10-year bilateral defense pact covering mutual support during armed attacks, military industry investments, intelligence sharing, and post-war reconstruction.
Although the agreement has not yet been signed, 30 countries—mostly NATO members—have already finalized similar deals with Ukraine.
