BI-WEEKLY MARKET INTELLIGENCE REPORT 13.05.25 - 30.05.25
- harrygeisler2
- Jun 2
- 4 min read
Welcome to the latest edition of Dual-Use Dispatch - your bi-weekly briefing on the intersection of commercial innovation and national security.
In this issue: EU defence financing gets a massive injection, Port Sudan becomes a case study in drone-enabled asymmetric conflict, and Western governments accelerate efforts to de-risk and deploy dual-use startups. We track major contracts, policy pivots, and the shifting terrain of military innovation - from Brussels to Brisbane.
INTEL SNAPSHOT: MAJOR PROCUREMENT DEVELOPMENTS
EU Launches €150B SAFE Defence Investment Program
On May 27, 2025, the European Union officially adopted the Security Action for Europe (SAFE) instrument - a €150 billion loan facility aimed at strengthening the EU's defence industrial base through joint procurement and investment. This initiative is a response to escalating geopolitical tensions and aims to enhance the EU's strategic autonomy in defence capabilities.
Why it matters: SAFE represents a significant shift in EU defence policy, emphasizing collective procurement and industrial collaboration among member states. By providing long-term, competitively priced loans, the program seeks to address capability gaps and reduce reliance on external defence suppliers. Notably, the inclusion of third countries like Ukraine and the UK (under specific agreements) opens avenues for broader cooperation and integration into the EU defence framework.
Key Features:
Joint Procurement Focus: Loans are primarily available for projects involving at least two member states, promoting interoperability and economies of scale.
Priority Areas: Funding targets include ammunition, artillery systems, cyber capabilities, air and missile defence, naval systems, drones, and electronic warfare.
Third-Country Participation: Countries with Security and Defence Partnerships with the EU, such as the UK, and nations like Ukraine and EEA-EFTA states, can participate under certain conditions.
India Accelerates Indigenous Countermeasure Procurement
India’s Ministry of Defence is pushing for rapid acquisition of "desi" systems - including jammers, electronic warfare platforms, and air defence assets - via fast-track procurement channels. This is tied to increased tensions along northern borders and a government push for defence-tech self-reliance.
Why it matters: Global startups offering hardened EW, autonomous detection, or modular C-UAS systems should explore India’s evolving procurement frameworks. Local partnerships and tech transfer will be key.
Startup Radar: Dual-Use in Focus
CX2 (USA) - Targeting the Blind Spots in EW with Autonomy and Modular Signals Intelligence
CX2 is a recently launched US-based electronic warfare (EW) startup, co-founded by Nathan Mintz (formerly of Epirus), that just raised $31M in Series A funding led by Point72 Ventures. The company is building an integrated toolkit for countering the explosion of low-cost drones - blending SIGINT sensors, AI-enabled EW platforms, and autonomous counter-UAS drones into a cohesive stack.
Structurally, CX2 is doing what traditional EW vendors haven't: decoupling countermeasure effectiveness from platform size and human control. Their thesis is that small, self-guided EW assets - not truck-mounted jammers or manual SIGINT teams - are the only scalable way to deal with distributed, low-SWaP threats. They're betting on modularity, edge autonomy, and real-time adaptability over brute-force spectrum dominance.
Where the risks lie:
The tech stack - especially autonomous SIGINT + RF denial - will need to prove survivability in contested EM environments. Real-time RF mapping is hard enough; layering autonomy and threat classification into the loop adds real-time fragility.
Government buyers have historically deprioritised software-defined EW in favour of vendor-locked platforms with long procurement tails. CX2 will need to navigate entrenched acquisition norms, even if the threat model clearly favours their approach.
What it signals:
EW is no longer a domain owned by primes and locked boxes. CX2 is the clearest signal yet that defence-grade electronic attack and detection tools are moving toward modular, developer-accessible form factors.
Expect others - especially drone-focusedSIGINT companies - to shift from passive detection toward active, autonomous mitigation.
Company snapshot:
Name: CX2
HQ: U.S. (exact location not public)
Founded: 2024
Recent Funding: $31M Series A (May2025)
Investors: Point72 Ventures, Andreessen Horowitz, 8VC, and others
Website: CX2 Official Website
Mission Debrief: Global Flashpoints + Field Notes
Major Defence and Security Developments
General Dynamics wins $217M US Navy sustainment contract: General Dynamics Bath Iron Works secured a $217M modification contract to support DDG-51-class destroyers. The award covers lifecycle planning yard services and technical engineering to sustain one of the Navy’s core surface combatants.
Drone warfare escalates in Sudan with strikes on Port Sudan: On May 18, Sudan’s Rapid Support Forces (RSF) launched coordinated drone strikes on Port Sudan, previously considered a safe zone. The targets included fuel depots, airport infrastructure, and command centers - signalling the conflict's expansion into coastal, civilian-dense regions.
Talisman Sabre 2025 expected to test AI, swarming, and autonomous logistics: Australia’s major biennial joint military exercise is set to showcase unmanned systems, predictive targeting, and AI- enabled decision support tools - with US, Japanese and South Korean participation. TheAustralian Defence Force (ADF) is also trialling small-unit edge compute systems.
Policy and Government Innovation Moves
Germany and Ukraine to Co-Produce Long-Range Missiles: On May 28, Germany announced a partnership with Ukraine to jointly produce long-range missiles and cruise weapons, with ranges up to 2,500 km, to be assembled and deployed from within Ukraine.
European Commission doubles down on deep tech & dual-use startups: The EU announced a renewed startup strategy and expansion of the European Innovation Council (EIC) with a focus on dual-use technologies. Initiatives include cutting regulatory red tape, accelerating defence-tech scaling pathways, and enabling better co-investment with NATO-aligned funds.
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