A man practices flying an FPV drone during a simulation session at the Killhouse Academy drone training centre in Kyiv, Ukraine, on March 4.Chris McGrath/Getty Images
Canadian drone company Sentinel is in talks with a Ukrainian company to manufacture drones for the country to use in its war with Russia.
According to two sources with knowledge of the talks, Hamilton-headquartered Sentinel R&D Inc. is working with the Department of National Defence’s Directorate of Military Assistance Coordination (DMAC) to form a joint venture with a Ukrainian company, which would also be supported by the Ukrainian Ministry of Defence.
The Globe is not identifying the sources because they are not authorized to speak publicly about the potential partnership.
If successful, the joint venture would be the first of its kind for DMAC, which was tasked with co-ordinating such partnerships after Canada signed a letter of intent with Ukraine in August.
That letter, signed by Defence Minister David McGuinty and Ukrainian Defence Minister Denys Shmyhal, indicated Canada’s intention to finance the joint production of military equipment for Ukraine in Canada.
Canada is behind in the global drone race. But not for long
It was signed after Ukrainian President Volodymyr Zelensky announced the country’s “Build with Ukraine” initiative in June to open production lines in other markets, away from the frontlines, to help supply the country at war. The program is a contrast to Ukraine’s approach during the first few years of the war, which was to restrict exports of military technologies, closely guard Ukrainian intellectual property and encourage other countries’ companies to set up facilities locally to access the market.
By opening itself up to joint ventures with allies, Mr. Zelensky said, in a written statement, that Ukraine aims to diversify its own supply and allow Ukrainian companies to share their knowledge and expertise. During the war, however, he said all products produced through the initiative will be sent to the Ukrainian Armed Forces.
A joint venture with Ukraine would be the next step in Canada’s support for the country. Since the beginning of 2022, Canada has committed $6.5-billion in military assistance to Ukraine, which will carry through to 2029.
Within that commitment is a $220-million donation announced by Prime Minister Mark Carney in August to purchase drone, counterdrone and electronic warfare capabilities, including investments into joint ventures. This builds upon the more than 100 high-resolution drone cameras and 900 drones from U.S.-subsidiary Teledyne FLIR, based in Waterloo, Ont., that Canada has already donated.
Ottawa plans to support drone development, quantum tech with $900-million for defence strategy
If the joint venture between Sentinel and the Ukrainian drone company is finalized, the two companies would work together on the production of drones in Canada, which DMAC would then buy and donate to Ukraine.
Currently, Sentinel manufactures an interoperable platform – allowing it to be used with different systems, devices, or software – called the ReKam 3.2. The fixed-wing uncrewed aerial vehicle (UAV) is payload-agnostic, meaning it can be used for anything from intelligence, surveillance and reconnaissance to electronic warfare to counter-drone missions, depending on how it’s configured. The drone can be launched in various ways, has a range of around 500 kilometres and a top horizontal speed of more than 180 kilometres per hour.
Sentinel’s specialty is in its composite manufacturing, for which it has exclusively developed the intellectual property and can apply to drones, missiles and interceptors.
The company declined to comment on the potential joint venture.
There’s no formal call-out process for DMAC’s work with Canadian companies. Rather, the government body either reaches out to companies, or vice versa, depending on what it’s looking for. DMAC doesn’t adhere to the same standard competitive process as other defence procurement bodies in Canada and can provide contribution agreements directly to companies. Sometimes, its process includes connecting companies to other Crown corporations such as the Business Development Bank of Canada or Export Development Canada.
Opinion: Canada must develop a national drone strategy
BDC confirmed it was in discussions with Sentinel about the company’s manufacturing and how it applies to the federal government’s recently released Defence Industrial Strategy, but declined to comment on the potential joint venture.
Peter Suma, managing partner of the BDC’s new $300-million StrongNorth Fund, said Sentinel is “part of a group of companies targeting the Defence Industrial Strategy’s need for advancements in drones, UAVs, airframes and aerospace in general.”
It’s unclear which Ukranian company Sentinel is negotiating with, and what the timeline is for the Ukraine-Canada partnership to be finalized. The joint venture may be a first for DMAC but not for Ukraine.
In April, the country signed a co-operation agreement with Germany to finalize a joint venture between defence tech companies Auterion Inc., which has offices in Munich, Germany, and Arlington, Va., and Airlogix, based in Ukraine.
The partnership backs the production of thousands of drones per year in Germany, using a combination of Airlogix’s airframes and Auterion’s software, according to a press release.
Initially, the contract will be strictly to produce drones for Ukraine under Ukrainian export permissions. However, the press release states the potential exists for both Berlin and Kyiv to source supply from the production line in the long-term.