Sweden Invests $1.6B in Air Defense and $140M in Space Capabilities

Sweden has announced a substantial investment of 15 billion Swedish kronor (approximately $1.6 billion) aimed at enhancing its homeland air defense capabilities. This move comes in response to identified gaps in protecting the civilian population, reflecting a significant shift in Sweden’s military strategy. The government plans to broaden its focus from solely safeguarding military units to also protecting cities and critical civilian infrastructure.

During the announcement at the Folk och Försvar national defense conference in Sälen, Swedish Prime Minister Ulf Kristersson emphasized the importance of this investment for civilian protection. “This is a major investment in new Swedish air defense capability, with the explicit purpose of better protecting civilians and civilian infrastructure,” he stated.

Sweden’s Minister for Civil Defense, Carl-Oskar Bohlin, revealed that the government had issued a directive six months prior, instructing the Swedish Civil Defence and Resilience Agency and the Swedish Armed Forces to prioritize the protection of population centers. He noted that lessons learned from the ongoing conflict in Ukraine heavily influenced this decision. “What we see in Ukraine is how Russia, in violation of international law, attacks civilians and civilian infrastructure,” Bohlin said, highlighting the urgency of enhancing Sweden’s deterrence capabilities.

The new territorial air defense system will primarily consist of short-range systems and independent company-sized units designed for mobility and geographic specificity. These units will protect vital civilian targets, such as bridges, railway hubs, and critical infrastructure like nuclear and hydropower plants. The initial major order to the defense industry is expected in the first quarter of 2026, with potential candidates including Rheinmetall’s Skynex and BAE Systems Bofors’ Tridon Mk2.

Sweden’s air defense investment follows a previously announced commitment of nearly 40 billion kronor (around $4.37 billion) for air defense enhancements. This includes medium- and short-range air defense systems for brigades, man-portable air defense systems, and the procurement of advanced systems such as Patriot missiles and anti-drone capabilities.

The government’s commitment to enhancing air defense is further underscored by the introduction of new legislation aimed at creating up to 1.5 million additional protected spaces throughout the country, complementing the existing seven million shelter spaces. This initiative aligns with Sweden’s updated total defense strategy and NATO commitments, reflecting a growing emphasis on protection against aerial threats, including drones and hypersonic missiles.

Investments in Space Capabilities

In conjunction with its air defense initiatives, Sweden has also allocated 1.3 billion kronor (approximately $140 million) to expand its space capabilities. This investment will focus on developing new intelligence, surveillance, and reconnaissance (ISR) satellites. Minister Pål Jonson articulated the strategic importance of enhanced space capabilities, stating, “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.”

The Swedish military launched its first dedicated satellite in August 2024, marking a significant step in its space strategy. The current announcement indicates plans for an additional ten satellites to augment the military’s capabilities.

To facilitate this expansion, Sweden has signed contracts with commercial space firms, including Finnish company ICEYE and US-based Planet. The multi-year agreement with ICEYE encompasses the acquisition of synthetic aperture radar (SAR) satellites and associated systems, enhancing Sweden’s sovereign space-based surveillance capabilities. Planet’s contract is also a significant investment, aimed at providing AI-driven intelligence solutions through a suite of dedicated satellites.

As Sweden moves forward with these initiatives, it aims to reinforce its national security and resilience in the face of evolving global threats. The strategic alignment with NATO and the focus on both air defense and space capabilities underscore the country’s commitment to a comprehensive defense posture.