August Defense Trade Newsletter Highlights

Japan’s $60 billion defense budget request seeks funding for a coastal defense network, more F-35s ‒ Japan’s Ministry of Defense has submitted a $59.9 billion budget request for FY26, highlighting its push to develop SHIELD, a multilayered littoral defense system comprised of unmanned systems. The budget also includes such acquisitions as additional F-35 fighter jets and KC-46A tankers.

Hanwha to invest $5 billion to improve infrastructure at Philadelphia shipyard ‒ South Korea’s Hanwha Group has announced a $5 billion investment to expand the Hanwha Philly Shipyard in Philadelphia, aiming to increase ship production capacity from fewer than two vessels annually to up to 20. The investment is part of a broader $150 billion South Korea–U.S. shipbuilding partnership and will support construction of LNG carriers, naval vessels and Jones Act-compliant tankers.

Nordic nations bankroll U.S. weapons for Ukraine in $500 million pledge ‒ Denmark, Norway and Sweden have jointly pledged $500 million to fund a U.S. weapons package for Ukraine that includes Patriot air defense munitions and anti-tank systems. Ukraine Minister of Defence Denys Shmyhal emphasized the nation’s appreciation for the support, specifically noting Sweden’s $275 million commitment and its joining of the Prioritized Ukraine Requirements List, a joint initiative with the United States.

Poland signs off on $3.8 billion F-16 fighter jet upgrade ‒ Poland has finalized a $3.8 billion agreement with the U.S. to upgrade its fleet of 48 F-16 Block 52+ combat aircraft to the advanced F-16V configuration. Led by Lockheed Martin in partnership with Poland’s Military Aviation Works No. 2, the aim is to extend aircraft service life while strengthening interoperability with NATO forces. The upgraded jets are expected to return to service between 2030 and 2038.

Turkey’s $1.5 billion Steel Dome hub envisioned as Europe’s largest air defense facility ‒ Turkey has announced a $1.5 billion investment in the Ogulbey Technology Base to double production capacity for components of its Steel Dome national air defense system. Led by Aselsan, the facility will support systems like SIPER, HISAR and KORKUT, and is expected to be operational within 18 months. Aselsan confirmed that the Steel Dome is NATO-compatible and noted growing international interest, particularly from Gulf states and Eastern Europe.

For more details on U.S. defense trade, please contact the authors of this alert.

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