Neros Technologies was founded in 2023 in Fairbanks, Alaska, with a focus on manufacturing small first-person-view (FPV) drones for the U.S. military. At its inception, there was limited demand for such drones, which led to challenges in identifying interested customers.

CEO Soren Monroe-Anderson noted the importance of understanding military needs, which drove the company to visit Ukraine to observe how drones were deployed in combat. These insights informed Neros’ focus on production, supply chain management, and rapid iteration of drone technology. Monroe-Anderson, a 22-year-old professional drone racer, transitioned from hobbyist to weapons-maker during this process.

The company secured private funding from notable investors such as Peter Thiel and Sequoia Capital, allowing Neros to establish a 15,000 square foot facility in Los Angeles. To ensure reliability, the company actively sought alternatives to Chinese components for its supply chain. Neros has also opened an office in Ukraine to reinforce its operational capabilities.

In February 2024, Neros signed a contract with the International Drone Coalition to supply Ukraine with 6,000 drones over six months. This represents one of the largest known contracts awarded to a U.S. supplier in response to the ongoing conflict. The company is currently producing approximately 1,500 Archer drones per month, two-thirds of which are designated for Ukraine, while the remaining third services the U.S. military, including the Marine Corps, Army, and U.S. Special Operations Command.

Neros is one of only two FPV drone companies that meet the U.S. Department of Defense’s supply chain requirements, which prohibit Chinese components. In December 2023, the firm was sanctioned by China, a move it regarded as a “badge of honor.”

Monroe-Anderson aims to boost production capacity to 10,000 drones per month by the end of 2024, with a longer-term vision of achieving an annual output of one million drones, primarily for the U.S. Defense Department. He stressed the necessity of this production capacity for national defense in future conflicts.

The Pentagon has been trying to increase its inventory of low-cost, expendable drones, launching the “Replicator” program in 2023, with a goal of deploying thousands of drones by August of that year. However, challenges remain in aligning funding and resources with the increasing demand from troops on the ground.

Monroe-Anderson has observed a significant shift in demand from military clients over the past year, noting an aggressive interest in acquiring FPV drones for training and operational purposes. As the company prepares for potential future contracts, it is focused on ramping up production and ensuring its manufacturing processes can scale effectively.

The article is authored by Courtney Albon, a C4ISRNET reporter with experience in covering military technology, acquisition, and policy since 2012.