A few years ago, artificial intelligence (AI) was not something on the radar for many industries. Fast-forward to today and it is taking the defence world by storm.
Vection Technologies is a company that focuses on the development of AI, extended reality (XR) technologies, and software technologies, paired with hardware design and engineering capabilities.
In September 2025, the company signed a multi-year framework agreement for the price of $22.3 million. The first executive order received out of the agreement was for around approximately $8 million a couple of months back.
Then in February 2026, Vection Technologies was given the second executive order for $2.2 million which was for the Far Edge Data Retention Appliance (FEDRA), a defence-grade, edge-optimised data platform which supports data-intensive military missions and possesses AI-driven data retention and correlation.
This order was received from a repeat military customer within the European defence ecosystem.
The framework agreement has the potential to be extended up to $29.5 million upon the client’s request but as it stands, the current agreement will occur over the next three to five years.
“It’s one of the biggest contracts we have ever signed with our clients,” Vection Technologies, Co-founder and Executive Director, Lorenzo Biagi, said.
On the topic of FEDRA, Biagi explained its origins.
“We really had to come up with something original. We engineered a new appliance which is based on our own IP and then that was the reason why we had to go for a new product for FEDRA,” he said.
“From a technical standpoint, what makes FEDRA different from other comparable appliances is the ability to be more efficient when it comes to power savings, electromagnetic emission protection and cooling systems. Things like that make it pretty special.”
Biagi said that the company is actively pursuing pivoting its educational simulators into the defence sphere with regard to maintenance, with potential for opportunities such as AUKUS.
“We have started to use technology that we have developed for the industrial and manufacturing space to be applied within the defence space for maintenance purposes. Because mechanical equipment is mechanical equipment, no matter what you are using it for,” he said.
“The procedures you have to follow in defence might be more demanding, but from a software standpoint, it doesn't make much of a difference. Given that fact we have developed our augmented reality-based technologies that we use for the industrial space, we currently have two or three POCs with European partners working for the defence space, which are using these technologies for maintenance purposes, and they are basically testing out the technology right now.”
When asked if he had seen any aversion to AI within the defence industry, Biagi said the opposite had been true.
“Not at all. I'm talking out of our experience, so I can't speak for the whole defence department, of course, but as a matter of fact, we are rolling out AI based technologies daily, and our clients are not even thinking of putting this in discussion. That's all good from that perspective,” he explained.
The company wishes to consolidate its position within the European defence ecosystem.
“We have been working for that space for quite a while now, and it's working very well. But we are very much willing to expand and the two markets that we would be targeting are Australia and America,” he said.
“We understand that it's not easy. It's not easy to get a deal with the defence departments of foreign countries and such. But still, that is something that we would be really looking forward to.”
The company currently has no plans to expand into Japan, but Biagi is not opposed to the suggestion.
“When it comes to defence, trustability and reliability is what matters the most to clients. They are not willing to change any partner, as long as they don't mess things up, and we will not,” Biagi affirmed.