Spain Faces Artillery Crisis After Canceling Elbit Deal As Anduril Expands
Spain struggles with artillery shortages after canceling a deal with Elbit Systems, while Anduril expands into submarine manufacturing and the US Army seeks a new mobile air defense system.
Spain’s defense industry is facing a severe crisis regarding its artillery capabilities following the cancellation of a major contract with Israel’s Elbit Systems. Brigadier General Antonio Mongio Bergua, commander of the Spanish Artillery Command, admitted that the future local rocket program is in an uncertain state. In the wake of the Russia-Ukraine war, Madrid recognized the urgent need to rebuild military capabilities, selecting Elbit’s advanced PULS system, which can launch unguided rockets, precise munitions, and missiles up to 300 km.
However, the anti-Israeli government of Pedro Sánchez decided to freeze all defense deals with Israel, leading to the cancellation of the agreements. Madrid turned to local industry, and in December, EM&E and Rheinmetall presented a domestic plan to the Ministry of Defense. Despite these efforts, nine months have passed with zero progress, largely due to a lack of technology transfer and international cooperation, leaving Spain without advanced artillery systems it could have already possessed.
Meanwhile, defense tech giant Anduril Industries has announced plans to build a massive 185,000-square-foot submarine manufacturing facility in Baltimore, dubbed Arsenal 2. The plant will produce critical components, including torpedo tubes, for Virginia-class nuclear attack submarines to help address the U.S. shortfall in meeting its annual submarine production targets. Founded in 2017, Anduril recently completed a massive $5 billion funding round in May 2026, valuing the company at $61 billion, as CEO Brian Schimpf reported doubled revenues of $2.2 billion in 2025.
In the United States, the U.S. Army is preparing to brief defense contractors in Alabama on October 27-28 regarding a new mobile air defense requirement. The service is seeking an integrator to develop the M-SHORAD 4 system, an independent modular air defense solution designed to be mounted on various tactical vehicles to protect ground forces from drones, helicopters, and fixed-wing aircraft. Drawing lessons from conflicts like the war in Ukraine, the U.S. military emphasizes open architecture to allow seamless integration of future technologies.
