By Giulio Civettini - Military & Strategy Team

Introduction about Anduril and their mission 

Founded in 2017 by Oculus co-founder Palmer Luckey, ANDURIL INDUSTRIES is a California-based defense sector company1. As stated by Luckey and reflected in their mission, ANDURIL’s products aim to enhance the ability of the United States and its allies to counter both symmetrical and asymmetrical threats, thanks to the company’s cutting-edge technology and innovative production capabilities2 3. These capabilities stem from the very way the company was founded. Differently from other major companies in the sector, such as Northrop Grumman and RTX, ANDURIL is not dependent on external funders and avoids long-term contracts with the U.S. government4 5. This approach creates a system where the company’s success relies on its ability to develop cost-efficient, cutting-edge products6. ANDURIL secures the necessary funds through private venture capital investments, providing it with more autonomy compared to companies reliant on external funders7.

The company isn’t incentivised by project delays or increased costs, which is why having an ecosystem outside the traditional defence industry giants could position it to address some of the challenges faced by the U.S. and its allies89. By conducting R&D (research and development) internally and avoiding the typical long-term contracts that often overrun schedules and budgets, ANDURIL remains highly flexible and competitive10 11.

The company has pursued a vertical acquisition strategy to diversify its capabilities. This approach to vertical integration allows ANDURIL to directly adapt its core product, “LATTICE OS,” to various systems1213. By automating processes such as quality checks, ANDURIL can scale production, achieving a competitive position in the industry14. A prime example of this vertical integration is the acquisition of Area-I, a Georgia-based company specialising in small unmanned aerial systems (UAS). This acquisition not only diversifies ANDURIL’s portfolio of autonomous systems but also provides a strategic advantage by integrating AI and their software directly into drones.15 As mentioned earlier, ANDURIL’s core product is “LATTICE AI,” a software that coordinates the ecosystem the company has created, providing users with complete battlefield awareness and intelligence-gathering capabilities16.

The strategic choice of being independent for R&D and for long-lasting contracts is also reflected in how their supply chain is structured. Thanks to the control and efficiency guaranteed by the vertical integration model, ANDURIL has gained an important edge in the industry, giving them the unique ability in the sector to adapt “faster” to what are the immediate demands coming from the battlefield. The in-house production and agile nature of the company enable quick scaling up production of both small drones and more complex sensor systems17. What gives ANDURIL this ability to quickly scale production is the modular design, giving them the ability to quickly repair, substitute, and update their systems, giving the important possibility of resisting warfare “ATTRITION” to the U.S. arsenal18. This means that the weapons or systems that are being used are sufficiently autonomous and relatively cheap, and so the problem that could present with the loss of said system would not impact so much on a country’s arsenal19. The supply chain is built in such a way that the most important components on which the production relies are directly produced in the U.S. or in-house, minimizing third-party dependencies in case of an all-out war20.

So, what emerges from this analysis is that ANDURIL is a uniquely structured company in the defense sector. Its approach to funding, marketing strategies and, more importantly, its engineering capabilities give it an edge in the agility to which the company adapts to emerging scenarios21.

How do Cruise missiles and loitering munitions/UAVs play into American theater level strategy?

One of the most recent additions to ANDURIL’s portfolio is the BARRACUDA AAV (autonomous air vehicle) (6). Before exploring how such a system could really change the current power competition happening over the South China Sea, it’s important to understand the role of cruise missiles and loitering munitions/UAVs. For decades, the U.S. has maintained uncontested air dominance wherever it has operated, giving it the possibility to deploy ground forces where needed. This has changed in the last decade; the new power competition that has emerged in the South Pacific is threatening the U.S.’s ability to maintain such a role. With the constant threats to Taiwan’s sovereignty, the United States is concerned about how, in an all-out conflict to protect the island, air superiority could be guaranteed22.

In this sense, the ability to counter China’s A2/AD strategy (Anti-Access/Area Denial)—which includes advanced missile defense systems, anti-ship ballistic missiles, and long-range radar systems capable of detecting and neutralising U.S. forces in the area—is crucial23. In this scenario, the role played by cruise missiles such as the “Tomahawk” or the JASSM is pivotal, as they could target the intricate defense systems of China’s A2/AD network24. Another important feature of these cruise missiles is their ability to perform low-altitude missions; being hard to detect, U.S. forces could potentially overwhelm defenses, penetrate hypothetical defensive shield, and enable amphibious landings or aerial assaults.

In contrast, loitering munitions offer the ability to conduct surveillance and real-time targeting acquisitions while loitering in the air. The strategic advantage of these weapon systems lies in their relative affordability and ease of replacement compared to larger, more expensive cruise missiles. In a potential conflict, it is key not only to have superior hardware, such as the F-35s or cruise missiles, but also to deploy systems that can provide targeting and surveillance in large numbers and at a low cost25. These factors explain ANDURIL’s recent efforts to develop the BARRACUDA AAV. This weapon system, supported by the production, acquisition, and supply chain strategies outlined above, is designed to be cost-effective and easily replaceable26.

The features of the BARRACUDA, in its three possible iterations, combine elements of both a standard cruise missile and a loitering munition. The advanced LATTICE AI, integrated with the BARRACUDA, enables the system to operate autonomously, reducing the human workload and enhancing operational speed. Advanced sensors, machine vision, and AI-guided targeting allow the BARRACUDA to alter its target mid-course and remain airborne for extended periods27.

There are several variants of the BARRACUDA. The first iteration, the BARRACUDA 100, is the smallest and lightest version, with an estimated payload of around 35 lbs and an 85-mile range when air-launched. This version is deployable from AH-Z1 helicopters, AH-64, and C-130 variants. The second version, the BARRACUDA 250, has an estimated payload of 85 lbs and a much longer range of 200 miles when air-launched. This iteration can be deployed from a variety of platforms, such as the F-35 (for internal carriage in bombers) or the F-15, F-16, and F/A-18 (for external carriage)28.

Barracuda’s technical role and how it stands out from existing systems

We rapidly talked in the last paragraph about the BARRACUDA-M family, but how does it really compare to the current family of cruise missiles? In the U.S. arsenal now, there are two types of similar systems, which are the TOMAHAWK and the JASSM. Both the JASSM and the TOMAHAWK feature a larger payload and a longer range (both with a payload of 1,000 lbs and a range of 200 miles vs 1,000-1,500 miles). The JASSM is primarily designed for air-launch from bombers and tactical aircraft, specialised in striking high-value targets from a stand-off distance. In contrast, the Tomahawk is a naval cruise missile, primarily launched from ships and submarines, and designed for precision strikes against land targets. Often used in maritime operations, it can engage various targets, including enemy ships and infrastructure.

After this summary of the current U.S. arsenal, it’s time to analyse where the actual competitive edge of the BARRACUDA family lies. With an estimated cost per unit of approximately $1.4 million for the JASSM (the newer JASSM-ER can cost around $2 million per unit) and from $1.5 to $2 million per unit for the Tomahawk, these systems are more expensive than the BARRACUDA in its larger iteration, the -500, which is estimated to be about 30% cheaper29. Another issue with the current U.S. stockpile of both the Tomahawk and JASSM systems is that, during various “war games” simulating an all-out conflict with China, this stockpile could be exhausted in just over a week of sustained combat operations. Given that the current production timeline for some munitions is around 20 months, concerns are raised about the U.S.’s ability to withstand a protracted conflict. This is one of the main reasons why the BARRACUDA-M family, if its premises hold true, could be a real game-changer, acting as a force multiplier and providing much-needed attrition capabilities in the potential conflict30.

Photo by Michael Wambangco: https://www.pexels.com/photo/us-navy-airplane-in-sky-20186687/

Export capability

The U.S. are not the only countries in the NATO alliance to have this kind of cruise missiles. In fact, France, Germany, Spain, and the UK have developed such systems. The UK and France use the “Storm Shadow/SCALP EG,” while Germany and Spain deploy the “Taurus KEPD 350”. The current stockpiles of these systems, along with production timelines and cost per unit, suggest that the advent of the BARRACUDA could be an interesting addition to these countries’ arsenals, providing a valid, cheaper alternative to more expensive and harder-to-produce systems31.

Conclusion

Anduril’s innovative contributions to the defense industry have the potential to significantly reshape global power dynamics in the years to come. With emerging threats like UAVs, loitering munitions, and the broader proliferation of drones, NATO countries such as the United States must recognize that preparing solely for symmetrical warfare is no longer sufficient32. Anduril’s approach becomes crucial in this evolving landscape. Its scalable production capabilities, combined with agility in research and development, position it to meet the rapidly changing demands of modern warfare. By integrating its core product, “LATTICE AI,” Anduril provides real-time, all-domain awareness and coordination, offering operators a comprehensive view of the battlefield. This adaptive technology bridges the gap between traditional military frameworks and the newer, faster-moving technological threats, such as autonomous systems and artificial intelligence. Anduril’s strength lies in its ability to complement the slower, more bureaucratic defense apparatus of conventional forces with its ability to react quickly and at a scale. By leveraging automation, modular systems, and software-driven innovation, Anduril ensures that NATO forces, especially the U.S., are better equipped to handle both large-scale conventional conflicts and smaller, asymmetric engagements.

The flexibility of Anduril’s ecosystem, characterized by fast-paced R&D cycles and a domestic supply chain, allows for rapid deployment of crucial assets and weapons systems33. This ability to respond to emerging threats efficiently, through innovations like the Barracuda family of AAVs or scalable drone production, highlights the significance of Anduril’s role in shaping the modern defence industry. As global power competition intensifies, particularly with rivals like China, companies like Anduril will be essential in maintaining military superiority, ensuring that NATO forces are not only prepared for current challenges but also those of the future. The defense industry, traditionally slow to adapt, is now being pushed to evolve by Anduril’s pioneering model, which balances autonomy, scalability, and technological innovation.

This transformation might ultimately drive a shift in how conflicts are approached, moving from rigid, high-cost systems to more agile, lower-cost, and rapidly deployable alternatives. In this context, Anduril’s innovations could serve as a cornerstone of a new era in global defense strategy, one where agility, warfare-attrition capability, and adaptability become the pillars of power projection34.

  1. Aitoro, Jill. “As Tech Startups Catch Dod’s Eye, Big Investors Are Watching.” Defense News, August 19, 2022. https://www.defensenews.com/smr/cultural-clash/2020/01/30/as-tech-startups-catch-dods-eye-big-investors-are-watching/.  ↩︎
  2. Ibidem ↩︎
  3. Tamir Eshel, By, Tamir Eshel, Tamir Eshel, News Desk, and Tamir Eshel - Oct 13. “Anduril’s Lattice AI - Defense Update:” Defense Update: - Military Technology & Defense News, January 6, 2024. https://defense-update.com/20231222_lattice-ai.html#google_vignette.  ↩︎
  4. Cancian, Mark F., Matthew Cancian, and Eric Heginbotham. “The First Battle of the Next War: Wargaming a Chinese Invasion of Taiwan.” CSIS. Accessed October 27, 2024. https://www.csis.org/analysis/first-battle-next-war-wargaming-chinese-invasion-taiwan ↩︎
  5. Gould, Joe. “US Defense Industry Unprepared for a China Fight, Says Report.” Defense News, January 24, 2023. https://www.defensenews.com/industry/2023/01/23/us-defense-industry-unprepared-for-a-china-fight-says-report/.  ↩︎
  6. Losey, Stephen. “Anduril Unveils Modular, High-Production Barracuda Cruise Missiles.” Defense News, September 16, 2024. https://www.defensenews.com/air/2024/09/12/anduril-unveils-modular-high-production-barracuda-cruise-missiles/.  ↩︎
  7. See 3. ↩︎
  8. See 4-5. ↩︎
  9. See 5.  ↩︎
  10. Oberman, Justin P. “Redefining Disruption: A Plan to Upgrade Defense Innovation.” Defense News, August 18, 2022. https://www.defensenews.com/opinion/commentary/2021/09/09/redefining-disruption-a-plan-to-upgrade-defense-innovation/.  ↩︎
  11. See 1-4 ↩︎
  12. “Anduril Acquires Air-Launched Effects Company Area-I.” Inside Defense. Accessed October 27, 2024. https://insidedefense.com/insider/anduril-acquires-air-launched-effects-company-area-i ↩︎
  13. See 3 ↩︎
  14. See 6. ↩︎
  15. See 2-3 ↩︎
  16. Tirpak, John. “Anduril Unveils New Low-Cost ‘Barracuda’ Cruise Missiles.” Air & Space Forces Magazine, September 12, 2024. https://www.airandspaceforces.com/anduril-unveils-new-low-cost-cruise-missiles/. ↩︎
  17. See 6. ↩︎
  18. Schogol, Jeff. “The Pentagon Seeks to Stock up on Tomahawks and Other Tactical Missiles in $842 Billion Budget.” Task & Purpose, March 13, 2023. https://taskandpurpose.com/news/pentagon-2024-budget-missiles/.  ↩︎
  19. Shelbourne, Mallory. “Raytheon Awarded $217M Tomahawk Missiles Contract for Navy, Marines, Army.” USNI News, May 25, 2022. https://news.usni.org/2022/05/25/raytheon-awarded-217m-tomahawk-missiles-contract-for-navy-marines-army.  ↩︎
  20. See 1-4-5. ↩︎
  21. See 4-10-16. ↩︎
  22. See 4. ↩︎
  23. See18 ↩︎
  24. See 19 ↩︎
  25. See 6 ↩︎
  26. See 16 ↩︎
  27. See 6-1 ↩︎
  28. See 16 ↩︎
  29. See 18-19. ↩︎
  30. See 4-5-16. ↩︎
  31. See 18-19. ↩︎
  32. See 4-6-10. ↩︎
  33. See 3-5-16. ↩︎
  34. See 10- 5. ↩︎