Project PANOPTES. MoD Opens £5m Counter Drone Competition for UK Innovators

The Ministry of Defence has earmarked a share of £5 million for technology that can detect and defeat the growing threat of cheap, mass produced drones targeting deployed British troops. UK Defence Innovation (UKDI) launched the initiative called Project PANOPTES on 2 September 2026, opening a competition to UK businesses, sole traders, and academic institutions to submit proposals.

The competition is run on behalf of the MoD through its Commercial X Dynamic Market, under the Procurement Act 2023. UKDI describes it as the first phase of a planned multi phase capability development and acquisition pathway, meaning successful innovations could eventually become formally funded, long term military systems.

Why the MoD Is Struggling to Afford Its Own Drone Defences

Drone warfare has fundamentally changed ground combat. Small, low cost uncrewed aerial systems are now routinely used to surveil, harass, and overwhelm military units forcing soldiers to respond with missiles and munitions that cost orders of magnitude more than the drones they destroy. The MoD's competition document describes current British defences as constrained by "limited magazine depth, high cost per engagement, limited manoeuvrability, workforce intensity and the difficulty of adapting capabilities at pace as UAS threats evolve."

Project PANOPTES focuses specifically on what the military classifies as Class 1 UAS, small aerial threats capable of operating singly, in sequence, or as simultaneous swarms. The primary concern is for deployed land forces, troops operating away from fixed bases, who face little or no overhead cover when attacks are designed to exhaust or overwhelm local defences.

Lasers Over Missiles. What the MoD's Ideal Solution Looks Like.

The MoD has set a detailed technical brief. Any solution must be vehicle mounted, capable of detecting, tracking, identifying, and defeating threats autonomously, and built around open architectures and modular design. It should draw on platform generated power rather than requiring separate energy sources, and must be designed from the outset to integrate with a future uncrewed ground vehicle and with wider Joint Ground Based Air Defence systems.

While the competition is open to any credible novel approach, the MoD has signalled a clear preference. The competition document states the authority is "particularly interested in capabilities centred on Laser Directed Energy Weapon (LDEW) effectors." Laser systems offer the prospect of a near zero cost per shot directly addressing the economic asymmetry that makes ammunition based defences vulnerable to cheap drone saturation attacks. Export potential is also flagged as a desirable characteristic, an unusual criterion in domestic procurement that reflects the government's broader interest in placing British defence technology in international markets.

How to Apply. Deadlines, Stages, and What UKDI Will Assess

The competition uses a two stage down selection process designed to reduce the burden on both applicants and assessors. Stage 1 asks for a high level technology review and outline programme plan, a "white paper" style document rather than a full technical proposal. Stage 2 requires a detailed programme plan with milestones, evidence of component demonstrations, and commercial pricing.

Stage 2 proposals are assessed under the Most Advantageous Tender framework, weighted 60-80% on technical merit and 20-40% on commercial criteria. UKDI anticipates awarding multiple contracts within the £5 million total, though it has reserved the right to fund no projects if none are deemed adequate.

Who Is Eligible for Project PANOPTES Funding

Eligibility is limited to UK based organisations, companies registered at Companies House, sole traders, and academic institutions currently operating in the UK. UK ownership is not a requirement, but the work must be carried out in the UK. Each organisation may submit only one proposal and is asked to self select its strongest offer. Proposals must not include information classified above Official Sensitive, and should avoid Trade Control Restrictions where possible.

Stage 1 submissions must outline the applicant's current technology position, planned development work, rough order of magnitude costs, and an overview of how the final integrated system would be scaled to production. UKDI is not providing funding for bidding or proposal preparation costs. A launch webinar on 9 September 2026 will give potential applicants the chance to ask questions before the window closes.

What Winning Phase 1 Could Mean for Your Technology

Project PANOPTES is deliberately framed as a starting point. Phase 1 is designed to identify and accelerate existing technologies rather than deliver a finished operational system. If the process surfaces viable approaches, later phases are intended to mature those into Minimum Viable Products and then Minimum Deployable Capabilities, potentially leading to full adoption as part of a formally funded Programme of Record, subject to future approvals.

All intellectual property created under the competition remains with the supplier throughout, which may make the scheme more attractive to companies that have historically been cautious about engaging with defence procurement. Before any project is funded, suppliers will be required to undergo a Cyber Security Model assessment to verify compliance with defence supply chain requirements, with details to follow at Stage 2.

For those with relevant technology already in development, the timeline is unambiguous. Stage 1 closes in just over three weeks.