The memorandum of cooperation signed by Latvia’s water-drone startup “SUBmerge Baltic” and Ukraine’s defense technology manufacturer “Roboneers” provides for product distribution in Ukraine, partial manufacturing in Ukraine, integration of both companies’ electronics and software, joint development of new products in the maritime segment, as well as mapping potential opportunities in Latvia and NATO markets.
In the coming months, SUBmerge Baltic plans to deliver cable-operated underwater drones, followed by autonomous underwater drones in the second half of the year.
“The primary application of our underwater drones in this cooperation project at the moment is mine clearance and ensuring a safe environment for Ukrainian civilians, but in the future cooperation may also extend to operational needs,” says SUBmerge Baltic founder Kārlis Bērziņš.
Opportunities have also been identified for partial manufacturing in Ukraine, while keeping critical technologies – electronics and software – under the control of SUBmerge Baltic.
A strategically important export market
SUBmerge Baltic first met Roboneers during the Industry Days organized by the Latvian National Armed Forces. Roboneers’ Head of Business Development and Sales noticed the SUBmerge Baltic stand and recognized that such products are relatively rare worldwide – particularly in Ukraine.
In the days following the initial meeting, Roboneers representatives visited the Latvian company’s production facility and held discussions with end users. Several meetings quickly led to the decision to sign a memorandum of cooperation.
“A follow-up visit to Ukraine is planned in the near future to jointly test the equipment with end users and deploy it where the need is greatest,” says Bērziņš.
Ukraine is not the company’s first export market – SUBmerge Baltic also exports to Azerbaijan – but it is strategically important. Cooperation with one of Ukraine’s largest developers of unmanned ground vehicles and other autonomous systems significantly increases SUBmerge Baltic’s presence in a market with strong demand.
“This gives us confidence in the scale of the market and allows us to plan development, optimize technology costs, and develop more efficient manufacturing models. At the same time, it strengthens Latvia’s position as a country developing drone technologies, since competence in underwater navigation and inertial sensors is critical in the broader defense technology context,” he notes.
A startup born at Riga Technical University
The origins of SUBmerge Baltic lie at Riga Technical University, where students began developing an underwater drone. Initially, the idea was to create a device for inspection and search operations in water.
“The applications are wide-ranging – inspection of various bodies of water, search operations, monitoring of construction sites, detection of pollution. For example, our drone can be used by ports that need to inspect piers. Latvia unfortunately leads Europe in the number of drowning victims. Inspecting water bodies while searching for missing persons is another function our drone can perform,” Bērziņš previously explained.
The drone was designed specifically for Latvian and Baltic conditions, where water visibility is often poor. For that reason, it is equipped with a camera providing high-resolution real-time data and various sensors that determine the drone’s location, movement, and depth.
Over time, however, the company has increasingly turned toward the defense sector, where the drone can be used to monitor security situations.
“Our five-year goal is to become a technology integrator that provides NATO and allied countries with a comprehensive understanding of the maritime and underwater environment, as well as technologies for its protection and deterrence,” says Bērziņš.
Over the next three years, the company aims to become the region’s largest supplier of drone autonomy and support software, while also producing navigation sensors for dual-use technologies.
From research to production
Currently, the cable-operated underwater drone developed by SUBmerge Baltic – a startup founded in 2023 – has progressed to small-series production. Meanwhile, the autonomous underwater drone is undergoing testing before entering production.
“In parallel, several other products are in the prototype stage,” Bērziņš reveals.
The company is now transitioning from research and development to commercialization, focusing on active product demonstrations for potential partners and cooperation projects. The product is currently being tested together with specialists from the Latvian National Armed Forces, and discussions are ongoing with the Ministry of Defence regarding equipment supply. Negotiations are also taking place with countries in the Middle East.
“This year we expect a significant increase in demand and revenue,” he says.
So far, SUBmerge Baltic has attracted more than €2.6 million in funding from investment funds Scalewolf, Unmanned.vc, A-Green Fund, and Buildit, as well as from support programs of the Investment and Development Agency of Latvia and European Regional Development Fund programs. The company has also won several startup competitions, where prize money has further supplemented its funding.
The article was produced with funding from the European Regional Development Fund project “Innovative Entrepreneurship Development for SMEs”.
