Understanding Dual-Use Technologies: The Latest Updates
- harrygeisler2
- 5 days ago
- 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.
Key Highlights on Military and Commercial Technology
In this issue, the Pentagon has engaged commercial AI (OpenAI) through a new $200 million contract. This step underscores AI's dual-use promise. In Europe, financial and policy movements are paving the way for more dual-use research and development. The EU raised its investment cap to €100 billion. This includes billions aimed at enhancing energy grids and military bases. Additionally, a new €1.5 billion defense funding program has been launched. A Dutch startup, Lobster Robotics, is also in the spotlight as its maritime drone is being adapted for military applications. Furthermore, global tensions and cyber threats continue to escalate. Ukrainian forces are now repurposing Estonian Milrem ground robots. In international news, Japan's Prime Minister opted to skip the NATO summit, and hackers have initiated a new campaign targeting airlines, referred to as “Scattered Spider.”
Major Procurement Developments
Several high-profile contracts and deals are highlighting how commercial technology is transforming defense:
In the US, AI innovator OpenAI secured a $200 million contract with the Department of Defense. This exemplifies the crossover of civilian technology into military applications.
In the UK, outsourcing firm Serco is expanding its operations in North America. This follows their acquisition of Northrop Grumman's Mission Training and Satellite Communications unit for $1.8 billion. Notably, this deal will make defense work roughly 40% of Serco's revenue.
On the European continent, policymakers and investors are mobilizing significant capital. The EU ministers reached an agreement on a €1.5 billion European Defence Industrial Programme (EDIP) aimed at co-funding weapons projects.
French asset managers Tikehau Capital, SocGen Assurances, CNP Assurances, and CARAC have launched a €150 million defense and security investment fund, with substantial backing from France’s defense ministry.
Additionally, in Germany, new procurement rules have emerged. The Bundeswehr's acquisition chief has stated that future arms purchases will prioritize rapid delivery over supplier nationality. This shift aims to accelerate rearmament.
Startup Radar: Dual-Use in Focus
Lobster Robotics is a deep-tech startup known for its Scout autonomous underwater vehicle (AUV), primarily used for civilian seabed mapping. Recently, Lobster signed a cooperation agreement with the Dutch Ministry of Defence. This collaboration aims to develop a militarized variant of the Scout for the Royal Netherlands Navy, under NATO's Rapid Adoption Action Plan.
Co-founder Jan Tuinman emphasizes that dual-use innovations “make us faster, smarter, and more effective” for armed forces. This partnership reflects Lobster’s strategy. The company aims to adapt its commercial drone technology for defense tasks, while it continues to sell AUVs for industry and research.
Major Defence and Security Developments
Europe
Germany is ramping up its arms build-up. The procurement agency will prioritize speed in delivery, rather than favoring EU suppliers. Meanwhile, Brussels has agreed on the €1.5 billion EDIP funding plan. However, debates continue regarding the “buy European” rules. On the battlefield, Estonia’s Milrem Robotics reports that its THeMIS unmanned ground vehicles are actively involved in mine clearance, cargo transportation, and the evacuation of wounded personnel in Ukraine.
Asia/Pacific
In Asia, tensions are escalating. Japan’s new Prime Minister, Ishiba, joined fellow leaders in canceling a NATO summit trip. This indicates a potential shift in regional alignment. In Northeast Asia, South Korean intelligence has issued warnings that North Korea is preparing to send more troops and ammunition in support of Russia's efforts in Ukraine.
Middle East
The situation in the Middle East remains tense. Iran’s leadership has flatly rejected the idea of resuming nuclear negotiations while facing attacks from Israel. In turn, Israel reported striking multiple Iranian military and nuclear sites in its latest air raid. This ongoing conflict heightens regional security risks, prompting diplomats to scramble to revive long-stalled talks.
Americas
Across the Atlantic, US defense priorities are shifting. President Trump’s FY2026 budget proposal significantly increases funding for missiles and drones, while trimming orders for the F-35 jets. This reallocation reflects a notable technology pivot within US procurement protocols.
Infrastructure Security Developments
EU Initiatives
In the EU, member states have approved a significant increase in the European Investment Bank’s lending cap to €100 billion. It is noteworthy that the EIB's defense-related lending will triple to €3.5 billion. This fund will support “dual-use” initiatives ranging from drone programs to enhanced power grids and fortified military structures. These developments enable civilian financial channels to contribute to security infrastructure.
Global Nuclear Cooperation
On a global scale, the World Bank and the International Atomic Energy Agency have signed a Memorandum of Understanding (MoU) aimed at promoting safe nuclear power expansion in developing countries. This partnership seeks to extend the lifespan of existing reactors and accelerate the deployment of small modular reactors. It underscores the crucial role of nuclear energy in resilient infrastructure.
Aviation Cybersecurity Threats
The aviation sector is facing new cyber threats. Alerts have surfaced regarding potential attacks targeting transport infrastructure. Google’s Mandiant and Palo Alto Networks’ Unit42 have warned that the “Scattered Spider” (UNC3944) hacking group is now focusing on the airline industry. Recent attacks against carriers, notably Hawaiian Airlines and WestJet, resemble the techniques employed by this group. As a result, safeguarding critical aviation systems—from airports to air traffic control—remains a pressing concern.
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