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Tuva Siegel
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Updated at Jun 18, 2026, 04:19
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As smaller nations like Lithuania and Sweden pioneer cutting-edge laser systems and AI-assisted fighters, Europe aggressively scales defense spending to 5% to achieve strategic military independence.

By: Tuva Siegel, Warrior Editorial Fellow

The war in Ukraine has been a catalyst for weaponry and technology, shifting the landscape into an undeniably air-focused terrain, with the rise of drone technology and precision targeting. The countries moving fastest are not the traditional arms powers, but smaller or more specialized nations. For example, laser systems out of Lithuania and AI-assisted fighters from Sweden have determined that the price of reliance on the U.S. and NATO has grown too steep.

NATO's Five Percent Push

On June 16, 2026, the Pentagon released a statement announcing Secretary Hegseth was to participate in the NATO Defense Ministerial in Brussels, Belgium, to “focus on the urgent need for NATO allies to assume primary responsibility for the conventional defense of the European continent by increasing defense spending up to 5%.” This further exacerbates the simultaneous shift away from and continued reliance on the U.S. during wartime. According to NATO, in 2025, all 32 allies met or exceeded the 2% of GDP target for the first time, compared with only three in 2014. European allies and Canada collectively increased defense spending by 20% in a single year. Hegseth also outlined in a bilateral meeting with the Italian Republic Defense Minister, His Excellency Guido Crosetto, at the Pentagon, that fully committing to NATO 3.0, in which Europe continues to “step up” to meet “five percent of GDP, 3.5 on core defense and 1.5 on enablers, that needs to be the benchmark for allies around the globe meeting these security challenges.”

Through both necessity and the urgency of war in Ukraine, "Europe is reaching a point where defence readiness can no longer depend solely on budgets or political commitments," says Laurynas Šatas, CEO at Aktyvus Photonics, in a recent press release. Aktyvus, a Lithuanian technology company, specializes in designing and manufacturing robust, lightweight solid-state lasers and target designators for extreme environments. It is becoming increasingly clear that Europe is moving toward self-reliance, deliberately shifting away from its dependence on U.S. support.

Russia Targets the Baltic

Despite lacking a “historical legacy in heavy arms manufacturing,” Lithuania is determined to carve out a specialized niche developing ultra-compact UAV laser systems by aggressively reinvesting 100% of its net earnings back into operations. According to the same release, the company plans to deliver “over 600 laser target designation systems annually by 2027.” Additionally, countries like Sweden are proving to be valuable additions to NATO, according to government officials, as Russia continues to make its presence felt beyond the borders of Ukraine. As Europeans bulk up their defensive abilities, the U.S. would be well served in fostering these bonds and learning from the urgency of these countries. 

The countries bordering the Baltic Sea are paying attention to Russia’s presence, working to address the growing threat through a number of individual and collective systems. In an official safety report from Sweden, it has been observed that Russian “sabotage against infrastructure under the sea has occurred,” and while the threat remains “low,” the Swedish government assures that its membership in NATO “is the best way to safeguard Sweden's security.” 

Sweden's Gripen 

Part of that defense readiness comes from demonstrating strength through innovation, and Sweden's collaboration with the U.S. on the Saab JAS 39 Gripen, is a clear example. 15,2 meters in length, this aircraft features the latest Active Electronically Scanned Array (AESA) technology, “Intuitive HMC with AI, enabling the pilot to make quick and correct decisions,” as well as “silent networking and total sensor fusion across a tactical air unit to blind and confuse the enemy.” The Gripen E was designed with human oversight in mind and as an extension of the pilot's body, with AI incorporated to facilitate decision-making and support complex missions through its Wide Area Display (WAD).

Sweden's GripenSweden's Gripen

The Gripen does “real-time signal analysis and countermeasures management”, as well as extensive electronic intelligence (ELINT) signal collection, with 10 hard points, making it one of the most efficient and best fighter aircraft in the world. It is capable of conducting “air-to-air, air-to-surface and reconnaissance missions. Air supremacy is achieved with the carriage of up to seven Meteor Beyond Visual Range Air-to-Air Missiles and two Within Visual Range IRIS-T missiles,” according to documents from Saab.

Secretary of State Marco Rubio further emphasized the growing relationship between Sweden and the U.S. in a May 22, 2026, series of remarks in Helsingborg, Sweden. There, Rubio explained that “generally the additions to NATO have been countries that join because they were in a weak position, and so they join because they needed the collective strength of an alliance.” However, countries like Sweden with its “robust and mature manufacturing sector, industrial sector, technology sector” have been an “incredible addition to NATO,” joining from a position of strength, not weakness. 

Lithuania's Laser Bet

Further propelling this decrease in dependence and focus on self-reliance is Lithuania, with Aktyvus Photonics “tripling production of its compact laser target designation systems this year to bridge critical technology gaps on Ukrainian battlefields,"  according to the release. To shift its reliance away from the U.S., Aktyvus is encouraging Member States “to source at least 50% of their defence expenditures from the European Defence Technological and Industrial Base (EDTIB) by 2030, and 60% by 2035,” directly aligning with the EU Commission target. The EU claims that “if all Member States had spent 2 % of their GDP (with 20 % dedicated to investment) on defence from 2006 until 2020, this would have resulted in an additional €1.1 trillion for defence, with around €270 billion for defence investment,” in a January 2026 European defence industry programme (EDIP). This mission is further aided by Aktyvus’ record-breaking national defense budget of €4.8 billion (5.36% of GDP). 

The development of two OEM laser target designation (LTD) modules, the BAUDĖJAS (Standardization Agreement (STANAG) 3733 Class D1) and the smaller STRIKER MINI (Class D2), emphasizes Aktyvus’ goal of investing in precision targeting to reduce the number of weapons required to achieve a mission, directly influencing both economic barriers and lives saved. Traditional laser designation requires JTAC personnel to operate dangerously close to enemy positions or relies on costly platforms that risk significant losses if compromised. Despite these drawbacks, laser-guided munitions remain the preferred strike option due to their unmatched precision and resilience against jamming and electronic warfare, according to Aktyvus’ website

Both models display ultra-compact diode-pumped solid-state (DPSS) lasers for target designation on micro-Unmanned Aerial Vehicles (UAVs,) with BAUDĖJAS utilizing “a single module that powers both airborne and dismounted platforms.” Because the battlefield has shifted so much to smaller decentralized drone fleets, “Frontline troops can now guide precision missiles at safe standoff distances by mounting lightweight, high-power lasers directly onto micro-UAVs.” These systems operate with a smaller (85x50x35mm) core laser module, weighing approximately 200 grams. “This ultra-lightweight, ITAR-free module provides them with a high-performance component that integrates easily into their larger tactical systems and drone platforms.” Building laser designators into micro-UAVs represents a step forward in the evolution of laser designation, which has historically been confined to higher and medium altitude drones.

Sweden's defense industrial base runs decades deep and is incredibly diversified, while Lithuania is just now turning its history on its head, carving out a specialized niche directly correlated with the war in Ukraine. Both are similar and different, but they are on the same page about more autonomy in weaponry and about adding to NATO's strength rather than depending on it.

Tuva Siegel is an Editorial Fellow at Warrior Maven. She studies English at Kenyon College. Tuva is the author of Drömland, a fictional collection of short stories, and is currently studying weapons and military technology.