KYIV, Ukraine Nestled within an unassuming high-rise in Kyiv, a bustling assembly line hums with activity, where stacks of drone frames are piled high on metal shelves, inside cardboard boxes, and scattered across the floor. Young workers lean intently over their desks, transforming these black, square-shaped frames into lethal instruments of war. This dynamic scene is just one part of a broader initiative that underlines Ukraine's innovative approach to modern combat.

Down the hall, smaller rooms are filled with hobby-style quadcopters, compact drones no larger than a human hand. These drones are soon to be dispatched to frontline operators who are engaged in a relentless fight to reclaim their homeland from Russian forces in a conflict that has introduced a new era of warfare.

This drone assembly line, operated by a company known as 3DTech, is merely one of the myriad enterprises working tirelessly to produce what has come to be referred to as killer drones for Ukraines military. By utilizing affordable components like motors, cameras, and carbon-fiber framesprimarily sourced from ChinaUkraine has managed to establish a formidable arsenal while remaining budget-conscious. In a remarkable feat, Kyiv reported that it manufactured 2.2 million drones last year, surpassing Moscows production of 1.5 million.

Ukraine's burgeoning drone industry has not only developed into a vital component of its military strategy but has also become a global model for drone warfare. In a recent visit to Kyiv, Business Insider interviewed key figures in the drone sector, including company executives and military personnel, to explore the invaluable lessons that other nations could draw from Ukraines experiences.

As Ukraine depletes thousands of combat drones each month, manufacturers are concentrating on rapid assembly and the procurement of inexpensive parts. New businesses are emerging in unexpected places, such as apartment complexes and basements, all racing to meet the increasing demand for drones. To ensure they remain at the forefront of innovation, these manufacturers encourage direct communication with troops engaged in combat. Ukrainian soldiers frequently reach out to drone manufacturers via calls or texts, facilitating swift iterative development and refinement of their tools, ultimately leading to enhanced combat equipment.

In addition to producing combat drones, Ukrainian firms are also developing specialized drone ammunition, focusing on domestic component production, and researching artificial intelligence systems that could potentially lead to the deployment of drone swarms in the future.

Rustem Umerov, Ukraine's defense minister, proudly stated in February, Weve become the biggest drone manufacturer in the world, producing tactical and strategic level drones. With defense technology advancing rapidly, the nations drone manufacturers are not merely building weapons; they are reshaping the landscape of modern warfare, achieving this transformation at an astonishing pace.

This transformation is particularly evident in the field of unmanned systems, noted Nataliia Kushnerska, a senior executive within Ukraines defense industry. While the ongoing invasion has caused immense tragedy and suffering for the Ukrainian people, it has also acted as a catalyst for the rapid advancement of these technological capabilities.

Ukraines history in defense manufacturing dates back decades. Following the dissolution of the Soviet Union, Kyiv inherited nearly a third of the former empires arms industry, encompassing both production and research and development facilities. However, the integration flaws in the Soviet industrial apparatus left Ukraine's defense industries fragmented and unable to produce complete systems or the necessary ammunition.

After 2014, when Russia first invaded Ukraine, military spending began to rise significantly. The weapons procurement budget was initially set at $62 million, but by 2021, this figure had ballooned to $836 million, as reported by researchers from the Stockholm International Peace Research Institute (SIPRI). With the full-scale invasion in 2022, military spending surged to nearly $31 billion by 2023, reflecting the urgent need for arms, both domestically produced and imported.

We were a peaceful agricultural nation, Oleksandr Kamyshin, the former Minister of Strategic Industries, lamented, adding, Then they came and started killing us. We had to learn how to fight. It was not our decision to switch from being a bread basket to being the arsenal. This urgent need for self-defense propelled the nation to develop its defense capabilities.

Recognizing that defeating Russias superior manpower and machinery required asymmetric strategies, Ukraine emphasized self-reliance. Kushnerska explained, From the start of the full-scale invasion, we understood that Ukraine cannot rely solely on available resources or international support; we needed to cultivate our own capabilities.

In the early stages of the conflict, Ukraine faced artillery shell shortages and the prohibitive costs of missiles and guided munitions, which often amounted to hundreds of thousands of dollars each. Consequently, the focus shifted toward uncrewed systems that could deliver mass firepower at a fraction of the cost.

Ukrainian defense companies are now producing a wide array of drones for various combat missions. The most frequently deployed are small first-person-view (FPV) drones, capable of flying into enemy armored vehicles or troop positions to detonate explosives. These compact quadcopters, assembled by firms like 3DTech, are often improvised with cable ties to carry explosive warheads, such as RPGs, that detonate on impact. Remarkably, one of 3DTech's smaller FPV drones is priced at just $220.

In addition to these smaller drones, Ukraine is developing medium and long-range drones, enabling it to conduct strikes deep inside Russian territory, targeting military and energy infrastructure. Surveillance drones are employed to monitor the movements of Russian forces, while various types of naval drones are utilized in attacks against Russias Black Sea fleet.

The cost of these drones varies significantly, with many smaller models available for a few hundred dollars, while larger, more sophisticated versions can reach tens of thousands. However, even the most expensive drones remain significantly cheaper than cruise missiles or tactical ballistic missiles, which can cost millions. These drones have proven effective in eliminating warships, tanks, radar installations, and advanced reconnaissance platforms, while also minimizing risks for personnel engaged in perilous missions.

As the war has progressed, both sides have intensified their reliance on electronic warfare, which disrupts weapons by jamming signals. Initially, only around ten companies specialized in electronic warfare devices, but that number has since surged to nearly 150. One of these innovators, Rebel Group, is researching ways to defend against unjammable fiber-optic drones, a recent advancement in drone warfare.

Drones primarily rely on radio frequency connections for communication between the equipment and operators, making them susceptible to signal jamming. Engineers are now tasked with regularly changing their frequencies or employing frequency-hopping software to mitigate this vulnerability. Both Ukrainian and Russian forces have adapted by developing drones that utilize fiber-optic cables, ensuring a stable communication link that is resistant to electronic warfare.

Unlike many NATO allies, Ukraine's drone-making industry is distinct in its approach. Whereas countries like the United States often prioritize the development of larger and more costly systems, resulting in smaller quantities of advanced weaponry, Ukraines drone makers focus on producing large volumes of inexpensive systems. Kateryna Mykhalko, director of Tech Force UAa coalition of Ukrainian arms manufacturersexplained, In Ukraine, its a totally different situation. Our drone makers create products within a few months or weeks, rapidly supplying them to the military, testing them in real combat conditions, and adapting as needed. This swift process is crucial for meeting the demands of the battlefield.

Despite the challenges posed by limited resources compared to Russia, Ukraine is leveraging rapid innovation to its advantage. With a focus on efficiency and cost-effectiveness, the nations defense industry has transformed itself into a significant player on the global stage. There is ongoing interest from NATO allies in the drone capabilities being developed in Ukraine, and many see opportunities for international sales. Mykhalko noted, however, that while they advocate for private enterprises to operate globally, the Ukrainian government must also navigate export regulations and budget constraints.

As Kamyshin previously stated, We will always have a smaller budget and fewer soldiers than Russia. The only way we can withstand is through superior quality in our weapons and the expertise of the people behind them.