Montenegro plans to begin production of unmanned aerial vehicles (UAVs) in cooperation with a U.S. company, with the first batch of drones to be donated to Ukraine, according to a government document.
The initiative aims to strengthen Montenegro’s domestic defense industry and aligns with its NATO commitments, the government said.
“The project will enhance the Army’s capabilities in line with NATO standards, support Ukraine’s defense needs, and position Montenegro as a reliable supplier of advanced defense technology on the global market,” the statement read.
The document does not specify when production will begin or how much funding will be allocated.
The U.S. administration under President Donald Trump is expected to support the agreement with up to $15 million, funds already earmarked for Montenegro’s military.
A letter of intent approved by Montenegro’s cabinet on May 29 outlines plans to invest in UAV production and export capabilities via local airports. The letter is to be signed by Deputy Prime Minister Nik Đeljošaj and Robert J. Donahue, CEO of U.S.-based By Light Professional IT Services LLC.
A full contract is expected to be signed in September, though details such as the plant location, launch timeline, and workforce size remain unclear.
The deal also includes establishing a legal framework for the production and export of military equipment and hazardous materials. The government is currently drafting legislation to regulate arms manufacturing, expected by year-end.
Eight Montenegrin ministries, the Civil Aviation Agency, and the Podgorica airport are involved in the project.
By Light and its partner 4WINDS LLC will establish a company in Montenegro for the drone production effort. The agreement also calls for the inclusion of Montenegrin and regional firms to test aerial and underwater drone systems.
Two private companies from northern Montenegro—Tara Aerospace from Mojkovac and Poliex from Berane—are identified as key partners. Tara, which focuses on air defense systems, posted €8.6 million in profit last year. Poliex, a manufacturer of explosives, reported €4.2 million in profits.
According to By Light’s website, its drones feature extended flight times and low acoustic signatures, with multimodal air and maritime capabilities. The HALO-6 VTOL model, the most advanced in its fleet, can carry up to 27.2 kg and remain airborne for up to 10 hours.
Montenegro has agreed to donate the first series of drones and related defense equipment to Ukraine, citing the “urgent need for UAV systems and secure transport of hazardous materials” amid the ongoing conflict.
Since Russia’s invasion of Ukraine in February 2022, Montenegro—a NATO member and EU candidate—has provided €11.3 million in military aid to Kyiv, welcomed the highest per-capita number of Ukrainian refugees, and imposed sanctions on Russia.
Podgorica and Kyiv have also agreed in principle on a 10-year bilateral cooperation agreement covering defense industry investments, intelligence sharing, and postwar reconstruction. The deal is yet to be signed.
A proposal for Montenegrin participation in a NATO-led Ukraine mission has also been submitted to the national parliament.