UK secures historic £1.6Bn air defence deal

Air March 12, 2025

The UK will supply 650 Lightweight Multirole Missile (LMM) systems to Ukraine to boost the country’s air defence capabilities, as part of the new government’s commitment to Ukraine.

The UK government has announced a landmark £1.6Bn deal to supply 5,000 advanced air defence missiles to Ukraine, reinforcing the UK’s commitment to global security while creating 200 new jobs and sustaining hundreds more in Northern Ireland.

Boost for UK Defence Industry

The contract, the largest ever awarded to Thales in Belfast, will triple production of Lightweight Multirole Missiles (LMMs) at the company’s manufacturing facility. The deal will also support 700 existing jobs and benefit companies across Thales’ UK supply chain, injecting investment into the wider UK defence industry.

This agreement follows the September 2024 contract for 650 LMMs, demonstrating the UK’s continued military support for Ukraine. The first batch was delivered before Christmas, with the new deal ensuring ongoing supply to bolster Ukraine’s air defences against Russian attacks.

Strengthening Security and the Economy

The deal is a direct result of the UK Government’s commitment to increasing defence spending to 2.5% of GDP by April 2027, with an ambition to reach 3% in the next Parliament. This increased investment will:

Enhance national security by supporting Ukraine’s defence efforts.
Strengthen the UK defence industry, driving economic growth and job creation.
Expand opportunities for British businesses in cutting-edge military technology.

Prime Minister Keir Starmer said: “My support for Ukraine is unwavering. This deal strengthens Ukraine’s air defences while boosting the UK economy and creating high-skilled jobs. By doubling down on our commitment and working closely with key partners, we can help secure a lasting peace.”

Key Defence Investment for UK & Ukraine

The contract, worth an initial £1.16Bn with potential for an additional £500M, will be delivered by Thales Northern Ireland in collaboration with a Ukrainian industry partner, which will manufacture launchers and command vehicles in Ukraine.

Funded through a UK Export Finance (UKEF) loan, this agreement is part of the 100-Year UK-Ukraine Partnership, which provides £3.5Bn in UK-backed finance to support Ukraine’s defence industry.

Defence Secretary John Healey MP commented: “Three years into Russia’s full-scale invasion, we stand firm in supporting Ukraine. This deal will help defend Ukrainian cities while strengthening the UK’s defence sector and deterring future aggression.”

Scaling Up UK Defence Production

The LMM missile system has already proven its effectiveness in protecting Ukrainian civilians and infrastructure. The new contract will significantly increase production, ensuring that Ukraine remains equipped to counter aerial threats.

Andy Start, DE&S CEO and UK National Armaments Director, stated: “The UK’s defence industry has rapidly scaled up production to meet Ukraine’s urgent needs. This contract is a critical step in deepening UK-Ukraine defence cooperation.”

A Long-Term UK-Ukraine Defence Partnership

This deal is the first in a series of “mega projects” under the MOD’s Taskforce HIRST, aimed at rebuilding Ukraine’s defence industry and modernising its military capabilities.

UK pledges £3bn annually to support Ukraine’s military.
New £150m package announced this month for frontline Ukrainian troops.
Additional £1.5bn from seized Russian assets will boost Ukraine’s defence efforts.

With the UK committed to long-term support, this deal marks a significant step in securing peace through strength – delivering on the UK’s Plan for Change to enhance both national and economic security.

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