Ottawa defence startup Dominion Dynamics signed a memorandum of understanding on Oct. 13 with Ukraine’s Tencore to build the TerMIT uncrewed ground vehicle in Canada, with production targeted for 2027, according to BetaKit and the Canadian Defence Review.
The companies signed the agreement at the Canada Pavilion during the Association of the United States Army conference in Washington, the Canadian Defence Review reported. It said Nadia Theodore, Canada’s deputy ambassador to the United States, attended. The deal is not final: the firms said they will keep working toward definitive agreements, and no financial terms have been disclosed.
Under the memorandum, Dominion would manufacture the tracked, lightly armoured TerMIT, which can be set up for logistics, casualty evacuation or weapons. It would also fit the vehicle with its AuraNet autonomy and command-and-control software, which the Canadian Defence Review described as Arctic-hardened. A Tencore team would lead the first technology transfer and train technicians in Canada, the review reported.
“When Prime Minister Carney and President Zelenskyy committed our countries to build together, they gave industry a mission,” Dominion founder and chief executive Eliot Pence said, according to the Canadian Defence Review. Roman Tkachenko, a Tencore co-founder, said the biggest lesson from Ukraine is speed.
The agreement follows a joint declaration signed by Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy in Calgary in September, which Ottawa Business Journal said pushes for joint drone production between Canadian companies and Ukraine’s defence industry. The Canadian Defence Review reported that both countries committed to building thousands of battle-tested drones and uncrewed systems within two years, with one-third earmarked for Ukraine. Ottawa Business Journal said it found no direct government role in the Dominion deal, which is a private agreement.
Tencore says it has delivered more than 5,000 uncrewed ground vehicles to Ukrainian units since 2024, according to BetaKit. That figure comes from the company and was not independently verified in the reports reviewed.
Dominion launched in June 2025 and has raised $169 million since, BetaKit and Ottawa Business Journal reported. BetaKit said that includes a $139-million Series A round closed earlier this year and did not name the investors. The company has also moved into a new manufacturing facility in the Ottawa area. BetaKit put its size at 25,000 square feet, while Ottawa Business Journal reported 30,000 square feet in Kanata and said Dominion expects 200 employees by the end of the year. The reports differ, and the company has not been asked to reconcile them here.
Dominion also aims to develop an Arctic-hardened version of the TerMIT for Canadian use and for export to NATO allies. The Canadian Defence Review described that as an aim, not a committed program.
For Canadian readers, the deal is an early test of whether Ottawa’s drone-production pledge turns into factory work at home. Initial output is still more than a year away, and the vehicles’ cost, order sizes and export terms remain unannounced. BetaKit noted that Hamilton-based Sentinel R&D has signed similar Ukraine deals and has faced threats from Russian officials. Pence told BetaKit that Dominion is not concerned about such threats.
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Sources: BetaKit (Oct. 13), Canadian Defence Review (Oct. 13), Ottawa Business Journal (Oct. 13). Marked developing: the memorandum is not a final contract.
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