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The Pentagon has selected 25 U.S. defense manufacturers for the $1 billion Drone Dominance Initiative, aimed at rapidly expanding domestic small drone production. The approved companies will advance to an initial testing phase called 'Gauntlet I,' scheduled to begin shortly, with approximately $150 million allocated for prototype delivery orders.

The initiative focuses on small, lethal, and expendable drones produced through U.S.-based supply chains, excluding Chinese components. Defense Secretary Pete Hegseth stated that the military plans to deploy tens of thousands of these small uncrewed aerial systems (sUAS) by 2026.

Companies like Red Cat, Vector Defense, and Performance Drone Works are among those selected. This initiative marks a shift towards modern manufacturing and agile development in defense contracting, allowing non-traditional businesses greater access to military contracts, while bolstering the American supply chain.