European Defense Industry Programme (EDIP)

To strengthen the production capacity, industrial readiness, and security of supply of the European and Ukrainian defence industries for critical defence capabilities.

Why it’s relevant for the defence industry:

• Supports large-scale manufacturing investments, helping accelerate production capacity expansion.
• Reduces the investment burden for strategic production facilities, equipment, and industrial ramp-up.
• Supports expansion of manufacturing capabilities rather than only R&D activities.
• Strengthens positioning within the European defence supply chain.

• SMEs, mid-caps, large enterprises, and industrial consortia in the defence and electronics sectors.
• Entities established in EU Member States, EEA countries, Ukraine, or other eligible countries as defined in the call documentation.
• Companies with relevant manufacturing, technological, or industrial capabilities in one of the four capability areas (see Category above).
  • For the Electronics & Semiconductors and Platforms & End-products calls: entities must not be controlled by a non-EU/Norwegian third country or entity (derogation possible).
• A consortium is not mandatory but is strongly encouraged; maximum 15 entities per consortium.
• Cost of components sourced from outside the eligible area (see Location) must not exceed 35% of the total.
• Applicants must retain design authority: control over the product design and the ability to replace restricted non-eligible components.
  

€2–30 million available per project (depending on the call).

Eligible activities:

• Manufacturing capacity expansion.
• New production lines and industrial equipment.
• Process optimisation and industrial digitalisation.
• Testing and validation capabilities.
• Workforce training related to production ramp-up.

Eligible costs:

• Personnel costs (following country-specific coefficients).
• Subcontracting (up to 30% of total costs per beneficiary).
• Purchases: travel, equipment, other goods, works, and services.
• Indirect costs at 7% of direct costs.

• Up to 100% of eligible costs for Missiles, Ammunition & Bombs, and Unmanned & Counter-Unmanned Systems.
• Up to 35% of eligible costs (up to 50% where conditions for increased funding rates are met) for Electronics & Semiconductors, and Platforms & End-products.

• Missiles, Ammunition & Bombs: air defence systems, missiles and ammunition, deep-strike capabilities, rockets, smart munitions, loitering munitions
• Unmanned & Counter-Unmanned Systems: UAS, UGS, USS, UUS, Counter-UxS, attritable/expendable systems, sensor and payload integration, modular assembly and reconfiguration, MaaS
• Electronics & Semiconductors: guidance and propulsion electronics, RF and laser modules, avionics, PCBs and IC substrates, power electronics, FPGAs, SoCs, ASICs, secure processing and RF components
• Platforms & End-products: forging and machining, key sub-systems, composite materials, assembly and integration of end-products, dual-use industry conversion

• Applicants must demonstrate relevant industrial, technological, or manufacturing capabilities in the defence sector (see Location and Potential applicants for eligible entities and countries).
• Total EDIP budget: €535,000,000 across four calls.

• Ukrainian entities are eligible to participate on equal terms under the Ukraine Support Instrument (Missiles, Ammunition and Bombs call).
• EDIP aims to strengthen EU-Ukraine industrial cooperation, technological sovereignty, and security of supply across defence platforms, components, and systems.