The lack of funding is a bottleneck for Ukraine’s defense industry: the country has the industrial capacity to produce military equipment worth $35 billion annually but currently manufactures only about $15 billion worth due to limited financial resources. This is stated in a report by The New York Times.

The article uses the example of Ukrainian Armor to show that Ukraine has significantly ramped up arms production in an effort to reduce its dependence on allied weapon supplies.

In particular, the private company Ukrainian Armor has doubled its production of armored vehicles over the past year. “But it’s not enough. We need to produce more,” said Vladyslav Belbas, CEO of Ukrainian Armor LLC, in an interview with the outlet.

Responding to frontline needs, the company launched production of new products. Specifically, Ukrainian Armor began manufacturing a lightweight buggy capable of reaching speeds up to 145 km/h, allowing troops to evade drones using speed and mobility.

Taking into account the growing trend toward battlefield automation, Ukrainian Armor also produces the unmanned ground system Protector. “Essentially, it’s a mothership platform for drones, designed to transport smaller remotely operated vehicles to the front line. The smaller drones, in turn, deliver supplies and ammunition to combat positions, while the Protector serves as a relay station for signal transmission,” the article states.

As Belbas explained, the main purpose of such robotic transport systems is to save the lives of Ukrainian soldiers during dangerous missions.

“These innovations represent only a small portion of the company’s output. Most of its production remains focused on battlefield essentials such as mortars — a weapon reliable in any weather, unlike drones,” the publication notes.

“Mortars are like a timeless classic weapon,” says Belbas. According to him, the company produced around 1,000 mortars last year — roughly twice as many as the year before.

“Last year, Ukraine fully covered its needs for both mortars and mortar rounds. This marks a turning point compared to the beginning of the war, when nearly all mortar shells were imported,” added the CEO of Ukrainian Armor.

At the same time, Belbas noted that due to insufficient funding, the Ministry of Defense is unable to contract the necessary number of mortars this year.