Spain's Military Faces Setbacks After Canceling Elbit Deal, Anduril Expands

Spain's military is experiencing significant difficulties in its future rocket program following the cancellation of a deal with Israeli defense firm Elbit Systems. Brigadier General Antonio Menguiano Bergua, Commander of the Spanish Artillery, admitted the program is in an "unclear" state. Madrid had sought to bolster its military capabilities, particularly after retiring the "Teruel" system a decade ago. The PULS system from Elbit was chosen as the solution, offering a comprehensive platform capable of firing unguided rockets, precision munitions, and missiles up to 300 km. The original agreement included technology transfer and production of rockets, launchers, and ammunition, along with 12 launchers and 600 rockets, plus radars and drones. However, the Spanish government under Sanchez froze all defense deals with Israel in September last year, leading to the cancellation.

Spain then turned to domestic industry, with EM&E and Rheinmetall proposing a plan for full Spanish independence in December. Despite a subsequent cooperation agreement between EM&E and GMV in January, no progress has been made in the following nine months. Sources indicate a major obstacle is other countries' reluctance to share technology with Spain, unlike Elbit's original proposal which incorporated Spanish autonomy. It is suggested that Spain would currently possess PULS artillery if not for these actions.

Meanwhile, Anduril, a rapidly growing defense company, is expanding into submarine manufacturing. The company plans to establish a 185,000 sq meter submarine factory in Baltimore, Maryland, to support the production of Virginia-class nuclear attack submarines. This facility, dubbed Arsenal 2, will produce torpedo tubes for Newport News Shipbuilding and General Dynamics. This move marks a significant shift for Anduril, which has historically focused on unmanned surface and underwater vehicles, though it has marine capabilities. The company appears to be capitalizing on the US goal to increase domestic shipbuilding and address the US Navy's failure to meet its target of two submarines per year.

Anduril, founded in 2017, develops autonomous weapon systems, aircraft, missiles, and AI. The company recently completed a $5 billion funding round, valuing it at $61 billion, the largest in the defense-tech sector in 2026. CEO Brian Schimpf reported that Anduril doubled its revenues to $2.2 billion in 2025 and nearly doubled its workforce, transitioning more systems from development to production.

In other defense news, the US Army will hold a briefing in Alabama on October 27-28 for companies to present plans for a deployable air defense system for tactical vehicles. This system, M-SHORAD 4, aims to provide protection against drones, helicopters, and fixed-wing aircraft, though not absolute defense. The initiative seeks an integrator to manage the system's development and production, with the goal of enabling more effective ground attacks by protecting tactical forces.