Elroy Air Awarded $46M U.S. Army Contract
Published: August 18, 2026
SAN FRANCISCO — August 18, 2026 — Elroy Air, Inc., a U.S.-based technology developer of autonomous heavy-cargo drones for defense, rapid response and commercial logistics announced today that it has been awarded a $46 million, multi-year contract with the U.S. Army for the development of an autonomous hybrid-electric vertical take-off and landing (VTOL) uncrewed aircraft system for modular multi-mission payload delivery.
The new agreement builds on previous U.S. Army contracts from the past 2 years and will focus on ensuring the company’s heavy-cargo drone Chaparral can operate alongside service members in contested, austere environments by enhancing its modular multi-mission payload versatility and payload delivery mechanisms. Additionally, the program will advance key tactical enabling technologies required for the modern battlefield, such as an expeditionary mobile mission planner, cyber-protected communication links, GPS-denied/contested navigation, elevated autonomy, and reliable field operation under military conditions.
"This contract reinforces the critical role that heavy-lift autonomous hybrid VTOL drones will play in modern defense operations," said Dr. Andrew Clare, CEO of Elroy Air. "We are thrilled to expand our partnership with the U.S. Army to bring rapid, autonomous heavy cargo delivery capabilities that increase operational throughput and reduce risk for our troops."
The U.S. Department of War (DoW) has outlined contested logistics technologies as one of six Critical Technology Areas (CTAs) essential to addressing the United States' most pressing national security challenges. The contract will aid in development of solutions to overcome the challenges of disrupted or denied logistics to ensure seamless resupply and operational continuity in contested environments, with a focus on operational survivability and autonomous systems. Further outcomes will enable the DoW and its partners to meet challenges from near-peer adversaries, ensuring forces remain functional even when logistics networks are under sustained and multi-domain attack.
Elroy Air's Chaparral is an uncrewed, autonomous VTOL aircraft that carries 500+ pounds of cargo and requires no runways, airstrips, or other fixed infrastructure to operate enabling resupply in the austere, degraded, and denied environments where traditional logistics networks fail. Its hybrid-electric powertrain delivers the reliability of electric propulsion with extended range of up to 450 miles, and requires no charging infrastructure, further reducing the logistics footprint needed to sustain operations. Multi-mission pods allow rapid reconfiguration across payload types, giving Army and DoW partners the operational flexibility to adapt to evolving mission needs in the field.
Earlier this year, the Company participated in T-REX, the U.S. military's premier test and evaluation event run by the Office of the Under Secretary of War for Research and Engineering (OUSW R&E) Mission Capabilities to accelerate the adoption of emerging technologies across the Joint Force. The Company will begin manufacturing Chaparral in the United States later this year through an exclusive domestic partnership with Kratos Defense & Security Solutions (Nasdaq: KTOS).
www.elroyair.com
