Eurosatory 2024 – Interview of Patrice CAINE from THALES

For us, it is an opportunity to see all our major French and foreign clients and to show our products of today and tomorrow. Many decision-support systems and equipment. This year we have focused on artificial intelligence, which we have decided to accelerate across all products. For example, optronic systems that automate target recognition, radars to improve efficiency, and radios to remove background noise, a bit like Bose headphones for listening. So we are boosting our products with AI everywhere, and for the armed forces it is now essential. AI increases the effectiveness of what we offer. Ten, fifteen, twenty years ago we improved through electronics; the new leap is to use software to embed AI algorithms that multiply sensor performance. We do the same in command-and-control systems, C2 or C4 in military jargon.

Quantum is a little further off, not for immediate use, but things are advancing in two areas where the group is positioned: quantum sensors and quantum communications. The third big area, quantum computing, is more for Atos; we use it but are not in charge. In quantum sensors, we are using the oddities of quantum physics to improve sensors by a factor of 1,000, which is absolutely enormous and changes the scale. We have over 100 researchers working on these technologies. When will it be concretely usable? Not far off. Demonstrations exist in laboratories; I can invite you to our labs in Palaiseau to see them. Now we are addressing how to go from lab prototype to industrial object, which is not entirely easy, and also finding customers. For instance, an inertial navigation system 1,000 times more accurate than the fantastic one we already supply to Airbus – you need that performance for military uses like a nuclear submarine that needs to avoid surfacing regularly. So military applications will drive these quantum technologies.

We have increased our capacities. The need was already strong before the Ukraine war; the war has only reinforced, confirmed, or accelerated it. The geopolitical situation is quite degraded, and more and more countries want to strengthen their defense. Concretely, we have almost tripled radar production: from about ten radars per year to 25 this year and probably 30 next year. Another example: mortar production. Two years ago we were making 20,000 per year; four years ago it was nearly zero; in two years we will be at 80,000, multiplied by four in four years. Yes, it is backed by orders and forecasts. We now think in flows rather than projects or programs to deliver clients shorter lead times. As for bottlenecks, we don't have stock issues, but challenges in ramping up our subcontractors in the supply chain. After the COVID crisis there was a severe shortage of components across the industry; we are mostly out of that since early 2023. But other stress points have appeared: electronic boards, some mechanical parts. This supply chain is often dual-use, serving both civil and defense, and we are asked to produce much more and much faster with companies that have difficulty investing after the crisis, causing some choke points.

Absolutely. Renko guarantees us a certain volume of powder, essentially for propulsion of missiles, rockets, etc. Conversely, from Australia we have a factory producing TNT and RDX for explosive charges, and we guarantee them a certain production volume in the coming years. So it's a cross-exchange. Powder goes to Australia? No, Renko supplies us in France, we serve from Australia.