Global

Sweden allocates $1.6B to build territorial air defense capability, $140M for space

The decision reflects a shift in how Sweden’s military looks at air defense.

Swedish air force Maj. Gen. Jonas Wikman, the chief of the Swedish air force, speaks to New York Air National Guard service members during a visit to Hancock Field Air National Guard Base in Syracuse, NY, Apr. 7. (New York Air National Guard photo by Tech. Sgt. Alexander Rector)

STOCKHOLM and WASHINGTON — Openly acknowledging gaps in protecting its population, Sweden has announced plans to invest 15 billion Swedish kronor (about $1.6 billion) in new homeland air defense units. 

Additionally, Stockholm is bolstering its space-based intelligence capabilities with new investments.

The decision reflects a shift in how Sweden’s military looks at air defense. Traditionally, it has primarily focused on protecting its own military units and military infrastructure. Now, the government is taking a step by investing in a broader capability, signed to safeguard not only wartime units and military mobilization but also cities and critical civilian infrastructure.

“This is a major investment in new Swedish air defense capability, with the explicit purpose of better protecting civilians and civilian infrastructure,” the Swedish prime minister Ulf Kristersson said when the news was announced at the annual Folk och Försvar national defense conference in Sälen on Sunday.

The Minister for Civil Defense Carl-Oskar Bohlin revealed that six months ago the government issued a then-secret directive to the Swedish Civil Defence and Resilience Agency and the Swedish Armed Forces, concerning the protection of population centers as well as civilian and critical infrastructure from aerial threats. He emphasized that the initiative draws heavily on lessons from the war in Ukraine.

“What we see in Ukraine is how Russia, in violation of international law, attacks civilians and civilian infrastructure with the aim of breaking the Ukrainian will to defend themselves. When we now build our deterrence, we of course have reason to draw conclusions from what we now see unfolding in Ukraine.” he said.

The new territorial air defense will mainly consist of short-range systems, including a number of independent company-sized units. The units will be highly mobile or tied to specific geographic areas. They will provide the ability to protect civilian targets such as bridges, railway hubs, critical infrastructure including nuclear and hydropower plants, and urban areas, according to the minister. 

presented by

A first major order to industry is slated for Q1 of 2026, followed by progressive additional acquisitions. A source with knowledge of the plan told Breaking Defense that the tender is advancing, with potential candidates including Rheinmetall’s Skynex and BAE Systems Bofors’ Tridon Mk2. The setup will be layered, mobile, and deployable at multiple sites at once.

The territorial air defense comes on top of previously announced plans to invest in air defense worth nearly 40 billion kronor ($4.37 billion). This includes new medium- and short-range air defence for brigades (IRIS-T), man-portable short-range air defence (MPADS), Patriot air defence missiles, anti-drone capability including electronic warfare is 3.6 billion. In addition the current Visby-class corvettes and upcoming Luleå-class ships will be equipped with air defence systems. Major investments have also been made in radar systems for early detection of airborne threats. The new territorial air defense comes on top of that. 

Defense Minister Pål Jonson emphasized that the initiative draws heavily on NATO chief Mark Rutte’s call last summer for a 400 percent increase of air defense in the alliance. 

He also stressed that Russia’s military-industrial complex is operating effectively and steadily delivering to the forces engaged in combat against Ukraine. This is made possible with assistance from both North Korea and Iran, he added. “It is entirely clear that Russia’s production capacity — for long-range missiles and ballistic missiles supplied by both North Korea and Iran, as well as drones — has increased dramatically,” he said at the press brief. 

Earlier this week, the government introduced new legislation aimed at making up to 1.5 million additional protected spaces available in Sweden, on top of the seven million existing shelter places for the civil population. 

The move aligns with Sweden’s updated total defense strategy and NATO commitments, reflecting increased focus on layered, resilient protection against drones, and hypersonic missile threats in a potential high-intensity conflict.

Investments In Space

In addition to the air defense investments, Sweden has announced a commitment of 1.3 billion kronor ($140 million) to “expanding” its space capabilities with new intelligence, surveillance and reconnaissance (ISR) satellites. 

“Enhanced space capabilities offer Sweden improved intelligence gathering, enhanced freedom of action and greater strategic autonomy. By building up national satellite capabilities, we are strengthening the protection of our combat forces and increasing Sweden’s value as a relevant and reliable Ally,” Jonson said in a statement. 

The Swedish military launched its first dedicated satellite, a communications bird, in August 2024, following the July publication of its first space strategy. Today’s announcement said that about 10 more satellites would join the military fleet under the new spending plan.

Stockholm today inked two new contracts with commercial space firms: Finnish company ICEYE and US firm Planet.

Under the “multi-million, multi-year” deal with ICEYE, the Swedish Armed Forces will buy “SAR satellites, data and software, along with the associated ground and technical systems required to establish a sovereign, space-based surveillance and intelligence capability,” the company announced today. It did not, however, reveal the contract’s value or any other details.

Touting the fact that ICEYE’s technology is free from US ITAR restrictions, the company noted the ability of its SAR-sats to produce imagery through clouds and snowy conditions in the High North. 

Seppo Aaltonen, the firm’s vice president of Nordics and NATO, said, “ICEYE is proud to partner with the Swedish Armed Forces and deliver sovereign space-based ISR capabilities that work in all weather and lighting conditions of Northern Europe and Arctic. We especially welcome cooperation with Sweden and our closest Nordic NATO allies to enhance the security and resilience of the North-Eastern Flank of NATO.”

Similarly, Planet announced today “a 9-figure, multi-year agreement with the Swedish Armed Forces for dedicated electro-optical imaging satellites and AI-driven intelligence solutions.” While the company did not release any more information about the deal, co-founder and CEO Will Marshall posted on LinkedIn that it involves a “suite of satellites” and “space-based data” as well as AI products.

“Europe needs its own eyes, and Sweden is leading the way by securing sovereign space capability at incredible speed,” he said in the posting.