Scaling Drone Manufacturing Throught the Gigafactory Model

Abstract

Modern warfare has demonstrated an increasing demand for unmanned aerial systems (UAS) that provide critical battlefield advantages. For example, the war in Ukraine has highlighted drones' role in defense operations, demonstrating their ability to enhance situational awareness, conduct reconnaissance, and deliver kinetic effects efficiently. While drones have historically been overlooked by military planners due to perceived operational limitations, their recent success in modern conflicts has solidified their importance. However, the U.S. faces significant challenges in rapidly scaling drone production. Many UAS components rely on foreign supply chains, and the domestic manufacturing infrastructure remains fragmented. To address these issues, companies such as Anduril have pioneered the Gigafactory model—centralized, high-volume production facilities that integrate supply chains to achieve economies of scale and enhance supply chain security. The focus on the Gigafactory model stems from its demonstrated success in industries like electric vehicles and semiconductors, where rapid scaling, cost efficiency, and supply chain control are critical. Applying this model to the defense sector presents a promising pathway to overcome current production and sourcing limitations. This thesis explores the viability of Gigafactories as a model for increasing the domestic production of UAS to meet DoD requirements.