Defence systems £20 Million Investment for Hypersonic Target

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£20 million investment for hypersonic target to test air defence systems and boost British small businesses.

British small businesses will help develop a hypersonic ‘clay pigeon’ target, a vehicle intended to represent threats capable of travelling at five times the speed of sound, under a new £20m investment. The target will test missile defence systems designed to protect the UK from advanced threats such as hypersonic missiles.

The contract, awarded to Lockheed Martin UK, will support around 63 jobs in Bedfordshire, and have 15 UK SMEs benefitting through the supply chain, showing how defence is an engine for growth.

It comes as the government unveiled a new Defence SME Action Plan, which will open up opportunities for small businesses across the defence supply chain.

Known as Project Bowline, the work will produce a hypersonic target, designed to act as an advanced ‘clay pigeon’ for next-generation air defence systems, including sensors and interceptors, to shoot down as they’re developed. This will help the UK test counter-hypersonic missile capabilities, ensuring that the Armed Forces lead on producing and countering the most advanced threats.

The project is part of international collaboration under AUKUS Pillar 2, the trilateral partnership between Australia, the UK, and the United States to develop advanced military capabilities, including hypersonic and counter-hypersonic technologies.

Minister for Defence Readiness and Industry, Luke Pollard MP said:

"British businesses are the backbone of our defence industry, and we’re backing them to succeed. Our SME Action Plan will give firms of every size a clearer, faster route to contracts at home, while programmes like Project Bowline show exactly how major defence investment flows through to small businesses across the UK.

"With our commitment to spend £7.5 billion with UK SMEs by 2028 and a further £400 million ringfenced for UK Defence Innovation every year, defence is delivering growth across the UK, sustaining skilled jobs and strengthening our security at the same time."

The new SME Action Plan, led by the Defence Office for Small Business Growth, sets out concrete steps to remove the barriers small and medium businesses face when working with defence—opening up supply chains, simplifying procurement and creating accessible opportunities across the defence industry. The plan will simplify processes at all stages of the contracting cycle and marks another key step in the MOD’s drive to increase defence spending with SMEs to £7.5 billion by 2028, representing a 50% increase on the current spend.

The announcements come as the Defence Secretary Wes Streeting MP and Minister for Defence Readiness and Industry Luke Pollard MP are championing the UK defence industry at the Farnborough International Air Show, one of the world’s largest aerospace and defence trade events.

National Armaments Director Rupert Pearce said:

"Delivering Project Bowline will help ensure the UK stays ahead of rapidly evolving hypersonic threats. By working with our AUKUS partners and investing in advanced missile technology in the UK, we strengthen our national arsenal, boost a key sector in our economy, and support our ability to deliver effective missile defence.

"The Ministry of Defence already works with around 12,000 SMEs through its supply chain, and that work has only accelerated in the year since publication of the Modern Industrial Strategy and Defence Industrial Strategy. That work has included: the launch of the Defence Growth Deals and Defence Technical Excellence Colleges; the award of thirteen British-based SMEs contracts of up to £4 million each from the Defence Unicorn Fund; and the ringfencing of £400 million annually for UKDI to accelerate innovation."

Kevin Craven, CEO of ADS said:

"We welcome the publication of the SME Action Plan today—it is a positive and timely step towards unlocking the full potential of the UK’s defence industrial base. Smaller businesses—including more than 1500 ADS members—form our industrial bedrock, delivering innovation, agility and critical capabilities throughout the UK.

"Commitments to simplifying procurement processes, improve access to opportunities and increase engagement with smaller businesses will help ensure that innovative UK companies can compete, invest and scale with confidence.

"We look forward to working closely with Government and our members to deliver this ambition into tangible opportunities for businesses across every region of the UK."