The U.S. Defense Secretary on Friday ordered the Pentagon to sharply expand domestic production of unmanned aerial systems and lifted procurement restrictions that had limited the military’s drone purchases, according to multiple reports dated 11 July. The policy shift ignited a rally in drone-related equities. Kratos Defense & Security Solutions rose roughly 10% in midday New York trading, while AeroVironment and other drone manufacturers also advanced as investors bet on a surge in Pentagon orders. The directive underscores accelerating demand for domestically built drones as the Defense Department modernises its fleet and seeks to fortify supply chains. Additional guidance on production targets and forthcoming contract awards is expected in the coming weeks.