The trend of factories in defense technology continues to gain momentum. Recently, Anduril unveiled plans for a billion-dollar ‘megafactory’ in Ohio, while Saronic announced its intention to establish a factory for mass-producing autonomous warships, following a $600 million funding round.

Anduril is now exploring the possibility of expanding its operations beyond the United States by establishing a factory in the United Kingdom. This move is part of the company’s strategy to diversify its defense contracts.

According to Rich Drake, Anduril’s general manager for the U.K. and Europe, the company is considering opening a facility in the U.K. if it secures sufficient orders. As reported by Bloomberg, this potential factory would focus on drone production and research and development.

The potential location for the factory is likely to be near Oxford and Cambridge, as reported by Sifted. This strategic location would enable Anduril to leverage the region’s expertise and talent in the field.

The timing of this potential expansion is opportune, as European defense budgets are reaching record highs. Meanwhile, the United States is scaling back its aid to Ukraine, creating new opportunities for companies like Anduril.

Anduril, a California-based company reportedly in talks to raise funding at a $28 billion valuation, did not respond to a request for comment on its potential U.K. factory plans.