Defense tech company Anduril is exploring the possibility of establishing a factory in the UK, as it looks to expand its presence beyond US defense contracts. This move comes on the heels of the company's announcement earlier this year to build a billion-dollar 'megafactory' in Ohio.

According to Rich Drake, Anduril's general manager for the UK and Europe, the company is planning to open a facility in the UK if it receives sufficient orders. The potential factory would be used for the production of drones and research and development, with a possible location near Oxford and Cambridge.

This development is timely, given the surge in European defense budgets. As the US winds down its aid to Ukraine, European countries are increasing their defense spending, creating a lucrative opportunity for companies like Anduril. The UK, in particular, has been investing heavily in defense technology, making it an attractive market for Anduril's expansion plans.

Anduril's potential UK factory is not an isolated development in the defense tech industry. Earlier this year, Saronic announced its plans to build a factory to mass produce autonomous warships, highlighting the growing trend of factory-based production in the sector.

The company's expansion plans are also buoyed by its reported valuation of $28 billion, which would make it one of the most valuable defense tech startups in the world. Anduril's ability to tap into the growing European defense market could further boost its valuation and cement its position as a leading player in the industry.

The UK factory, if it materializes, would be a significant milestone in Anduril's global expansion strategy. It would enable the company to tap into the UK's defense budget, which is expected to increase in the coming years. Additionally, the factory would provide Anduril with a strategic foothold in Europe, allowing it to pursue contracts and partnerships with other European countries.

In conclusion, Anduril's potential UK factory is a significant development in the defense tech industry, highlighting the growing trend of factory-based production and the increasing importance of European defense budgets. As the company continues to expand its global presence, it is likely to play a major role in shaping the future of defense technology.