Drone partnership: BAE FalconWorks and Lockheed Skunk Works to co-develop autonomous air system

At the DSEI arms fair in London on Monday, BAE Systems’ FalconWorks and Lockheed Martin’s Skunk Works announced a “strategic collaboration” to develop a new uncrewed autonomous air system, aiming to field modular products that can counter electronic warfare, according to Reuters. The rare tie-up between two top “prime” contractors targets faster, more affordable delivery of capability as demand for autonomous air power accelerates. The collaboration links the secretive research units of Britain’s BAE Systems and U.S.-based Lockheed Martin—labs that typically handle classified work and rarely disclose projects or partnerships. Executives framed the move as a practical response to rapid innovation in the drone sector and the need to harden aircraft and weapons against jamming.

Electronic-warfare focus and speed-to-field

Dave Holmes, managing director of BAE FalconWorks, said working together should speed development across a range of systems.

“Normally, prime organisations would seek to go and develop these things in isolation,” Holmes told Reuters. “The driver is about delivering a technical solution as soon as possible at an affordable price,” he added.

Initial work will explore “modular” products designed to counter electronic warfare by erecting “a wall of electronic resistance,” allowing aircraft and weapons systems to defeat jamming. The companies did not disclose a timeline for market availability but highlighted complementary access to customers and programs.

Uncrewed teammates for next-gen fighters

Both firms are pursuing separate next-generation fighter efforts that are expected to include uncrewed assets working in tandem with crewed aircraft. The new research pact signals how prime contractors may integrate autonomous systems as “loyal wingmen” and mission-tailored drones alongside future jets.

Skunk Works seeks a win after losses

The announcement follows financial and competitive pressure on Lockheed’s storied Skunk Works. In recent weeks, Lockheed posted $1.6 billion of program losses, including a $950 million charge for a classified Aeronautics program, indicating a setback for Skunk Works. The unit also recently lost a major contest to develop a next-generation fighter to rival Boeing.

“Skunk Works is in need of a visible success after losing the NGAD (next-generation air dominance) contract to Boeing,” said aviation historian and journalist Chris Pocock. “The U-2 also provided a stream of revenue directly to Skunk Works but may soon be retired,” said Pocock, author of “Dragon Lady Today,” a history of the plane that first flew in 1955. “Major manufacturers are also facing serious competition in drones from startups with lower costs,” he added.

Industry context—and protests at DSEI

While primes routinely team up on large platforms like the F-35, such early-stage collaboration in autonomous systems has been uncommon as startups carve out market share with fast, lower-cost offerings. The announcement landed at Britain’s largest defense expo, where about 200 demonstrators gathered outside the venue with signs opposing U.K. arms exports to Israel.

DroneXL’s Take

For drone professionals, this partnership bears watching on three fronts: (1) whether “modular” counter-EW tech quickly translates into fieldable payloads and tactics; (2) how uncrewed teammates are integrated with next-gen fighters and what that implies for autonomy, command-and-control, and safety; and (3) whether collaboration between primes can outpace startup agility on cost and iteration. The stakes are high for Skunk Works after recent losses, and for FalconWorks as it pushes into an increasingly competitive autonomous air systems market. What capabilities would you prioritize—EW resilience, attributable designs, or interoperability with existing fleets? Share your perspective in the comments.

Photos courtesy of BAE Systems