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Home / Business

Mount Maunganui’s Syos shortlisted for $229m ‘wingman’ AI drone UK military contract

Chris Keall
Chris Keall
Technology Editor/Senior Business Writer·NZ Herald·
26 Jan, 2026 10:55 PM4 mins to read

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Following its £30m drone deal with the UK Government, the Mount Maunganui startup is adding new uncrewed vehicles and tripling its local staff. Video \ Jason Dorday

Mount Maunganui-based Syos is one of seven companies invited to submit designs for a “futuristic” UK Ministry of Defence ‘wingman’ drone programme.

UK government tender documents put the value of the “Project NYX” contract at £100 million ($229m).

“When completed, the drones will be able to function as ‘loyal wingmen,’ working alongside crewed Apache attack helicopters to perform a variety of complex tasks such as reconnaissance and surveillance in contested areas, strike and target acquisition and electronic warfare,” the UK Ministry of Defence said in a statement.

“The UK is pivoting to a new way of war. By harnessing new technology, our Armed Forces will increasingly utilise uncrewed and autonomous capabilities to generate mass and lethality,” the Ministry of Defence said.

“Project NYX is the delivery of that work in action, capitalising on the power of drones, AI [artificial intelligence] and autonomy to complement the ‘heavy metal’ of tanks and artillery to make our armed forces stronger and safer on the battlefield.”

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The ministry said the “futuristic” wingman drones will “Utilise AI for independent decision-making – being able to adjust to complex battlefield situations within the bounds of mission parameters.

“They will enhance lethality, survivability, and mission effectiveness while reducing the risk and logistical burden for human-operated systems.”

Syos Aerospace founder and CEO Sam Vye in Mount Maunganui with his firm's SA200 autonomous, uncrewed helicopter. Photo / Jason Dorday
Syos Aerospace founder and CEO Sam Vye in Mount Maunganui with his firm's SA200 autonomous, uncrewed helicopter. Photo / Jason Dorday

Seven in the running

“It’s great recognition of a young British-New Zealand company leading the way in autonomous uncrewed vehicles – we’re proud to be advancing with some of the global defence primes," Syos founder and chief executive Sam Vye said.

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Seven firms have been invited to submit designs, the UK Ministry of Defence said.

In March, the shortlist will be cut to four suppliers, who will be invited to produce a demonstrator, the ministry said. Initial operational capability is targeted for 2030.

Syos is up against heavy-hitters including American aerospace behemoth Lockheed Martin, the UK’s BAE Systems and French giant Thales.

Vye demonstrates one of his company's drones to UK Prime Minister Sir Keir Starmer (front) and New Zealand Prime Minister Christopher Luxon during an April 22 visit to a military base training Ukrainian troops in the west of England. Photo / Getty Images
Vye demonstrates one of his company's drones to UK Prime Minister Sir Keir Starmer (front) and New Zealand Prime Minister Christopher Luxon during an April 22 visit to a military base training Ukrainian troops in the west of England. Photo / Getty Images

Previous win

Vye’s company already has form with the UK Ministry of Defence, however.

In April last year, Syos won a £30m drone deal with the Ministry of Defence, which is in turn aiding Ukraine in its fight against Russia.

The Herald understands Syos, which also makes an uncrewed boat, is also well positioned for business with the UK’s Royal Navy.

The firm, founded by Vye in 2021, is based in Mount Maunganui, home to its research and development operations for its hardware and the software for one operator to control many drones and many different types of uncrewed vehicles.

Most of its manufacturing is in Farnham in the UK.

Vye says the firm’s software, plus its nimbleness and fast-prototyping – its heavy-liftiing drone helicopter was rapidly developed by adopting a pilot-flown model – gives it a point-of-difference in a crowded field and an advantage over larger rivals.

Vye talks to Defence Minister Judith Collins, Vice Chief of Defence Force, Rear Admiral Mathew Williams and Associate Defence Minister Chris Penk at a Defence Industry Strategy Launch held at the Tamaki Leadership Centre, Whangaparāoa last October. Photo / Dean Purcell
Vye talks to Defence Minister Judith Collins, Vice Chief of Defence Force, Rear Admiral Mathew Williams and Associate Defence Minister Chris Penk at a Defence Industry Strategy Launch held at the Tamaki Leadership Centre, Whangaparāoa last October. Photo / Dean Purcell

“We work shoulder to shoulder with customers and end users in the field, prototyping fast, testing and iterating at pace, and hardening systems through real-world frontline use, never sacrificing performance or adding needless complexity.”

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The firm’s line-up includes “thumper” drones designed to knock incoming UAVs out of the sky, four-wheeled land-UAVs and, following its recent acquisition of Tauranga’s Bay Dynamics, uncrewed submersibles.

In September last year, Vye said his firm employed around 100 people, split evenly between New Zealand and the UK.

He planned to triple the Mount Maunganui-based staff over the next year to keep up with demand and had leased the building next to Syos’ HQ.

Vye said his aim was to achieve the same level of global success as Rocket Lab, the Kiwi-American firm that recently confirmed a US$816m ($1.4 billion) US military contract.

NZ’s pivot to drones

The New Zealand Defence Force (NZDF) looked offshore for its first drones, including Australian-made Bluebottle craft for the navy’s first uncrewed small vessels.

But in October last year, Defence Minister Judith Collins – with Vye on hand – launched a new Defence Industry Strategy at a Whangaparāoa event.

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Associate Minister of Defence Chris Penk said the plan would encourage the NZDF and local innovators to team up in showcasing New Zealand–made equipment and services to partners.

A new four-year Defence Capability plan, announced by Collins on October 3, included a new Technology Accelerator programme with an “indicative investment of $100m to $300m″.

The fund will see “Defence work with the advanced technology sector on military use technology for the NZDF and with export potential,” Collins said.

Vye expects the first Technology Accelerator funding to be allocated from July this year.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.

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