Revolutionizing Undersea Warfare with Modular Autonomous Underwater Vehicles
Vatn Systems, founded in 2023 and headquartered in Portsmouth, Rhode Island, is rapidly emerging as a leader in the development of modular autonomous underwater vehicles (AUVs) designed for defense, research, and commercial maritime missions. By integrating cutting-edge autonomy, modular design, and scalable swarming capabilities, Vatn delivers affordable systems built for today’s dynamic maritime environments.
Company Overview and Strategic Vision
Vatn Systems specializes in building affordable AUVs that can operate in cooperative swarms, enabling a multitude of new use cases. At the core of Vatn’s research and development efforts is advanced navigation software effective in GPS, vision, and communication-compromised environments, while reducing hardware costs.
The company’s AUVs are designed to be flexible and modular, allowing operators to deploy assets by hand, air, surface vessels, and more. This modular building block structure enables the vehicles to be tailored to the ranges, accuracy, and sensors required for every mission at the lowest cost.
Product Portfolio: Skelmir Series
Skelmir S6
The Skelmir S6 is Vatn’s initial AUV offering, featuring a 6-inch diameter design suitable for various underwater missions. Its modularity and affordability make it an attractive option for clients seeking cost-effective underwater solutions.
Skelmir S12
Building upon the S6, the Skelmir S12 is a larger, more capable AUV with a 12.75-inch diameter and lengths ranging from 9 to 25 feet. It can carry payloads up to 250 pounds, travel over 30 knots, and has a range exceeding 200 nautical miles. The S12 is designed for deployment from submarines, surface vessels, or aircraft, and can support a range of missions, including torpedo operations, sensor delivery, and electronic warfare capabilities.
The S12’s modular design allows it to fulfill both AUV and torpedo roles in various configurations, offering unprecedented flexibility and performance. Vatn’s CEO, Nelson Mills, highlighted that the S12 is 7-8 times cheaper than leading torpedoes and about 10 times cheaper than leading AUVs, making it a cost-effective solution for defense applications.

Advanced Technologies and Capabilities
Vatn’s AUVs are equipped with advanced autonomy and navigation software, enabling operations in environments where GPS, vision, and communications are compromised. The company’s research focuses on new sensor and data fusion techniques that reduce errors in inertial navigation systems.
The vehicles utilize applied AI to make real-time decisions and leverage machine learning to enhance navigation algorithms. This allows for effective operation in challenging underwater environments, providing a strategic advantage in defense missions.
Strategic Partnerships and Collaborations
In a significant move to scale manufacturing capabilities, Vatn Systems partnered with Palantir Technologies. This collaboration aims to digitize Vatn’s manufacturing process and provide AI-driven insights to accelerate the production of AUVs. The integration of Palantir’s software enables real-time tracking of operations, modeling of production timelines, and identification of potential slowdowns, thereby enhancing the agility and efficiency of the defense supply chain.
Manufacturing Expansion
Vatn Systems recently opened a state-of-the-art manufacturing facility in Bristol, Rhode Island, capable of producing up to 2,000 vehicles annually. This facility leverages patent-pending modular design and vertical integration techniques, enabling rapid production at a scale previously unseen in the underwater vehicle market. The facility’s opening was attended by notable figures, including Senator Jack Reed and Rhode Island Governor Daniel McKee, underscoring the strategic importance of Vatn’s contributions to national defense.
Funding and Investment
In November 2024, Vatn Systems raised an oversubscribed $13 million seed round, bringing total funding to $16.5 million. The round was led by DYNE Ventures, with participation from Lockheed Martin Ventures, RTX Ventures, In-Q-Tel (IQT), Propeller Ventures, SAIC Ventures, Cubit Capital, Fortitude Ventures, and existing investors. This funding enables Vatn to advance its strategy to expand its team and set up a state-of-the-art manufacturing facility to bring its autonomous underwater vehicles to market.
Leadership
Nelson Mills serves as the CEO of Vatn Systems. A lifelong sailor, Mills previously led hull development at Pure Watercraft, an electric boating startup. He later consulted on R&D for hydrofoiling electric boats and held investor roles with Link Ventures, Lux Capital, and Global Founders Capital. Mills holds a BA and MBA from Columbia University.
Conclusion
Vatn Systems is at the forefront of revolutionizing undersea warfare through its development of modular, autonomous underwater vehicles. With advanced navigation capabilities, strategic partnerships, and a commitment to scalable manufacturing, Vatn is well-positioned to meet the evolving needs of defense and commercial maritime operations. As the company continues to innovate and expand, it stands as a testament to the potential of agile, technology-driven solutions in enhancing national security and maritime capabilities.




