US Army Awards $46 Million Contract for Autonomous Cargo Drones

The U.S. Army is accelerating the development of unmanned logistics capabilities to counter attacks on supply nodes in high-intensity battlefields. Elroy Air has secured a $46 million contract to develop its hybrid-electric, vertical takeoff and landing (VTOL) autonomous cargo system, designed to operate even when facing electronic interference or communication loss.

The Army's investment, part of the Small Business Innovation Research (SBIR) Phase III program, aims to develop a Class 4 unmanned aerial system, weighing over 1,320 pounds. The project is slated for completion by February 2029.

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The Army is accelerating the development of unmanned logistics capabilities.

Elroy Air's flagship product, the Chaparral drone, utilizes eight rotors for vertical lift and four propellers for horizontal flight. It features a modular cargo bay capable of carrying over 500 pounds of supplies for a maximum range of 724 kilometers. During a July 15 demonstration, the drone successfully completed two drops in a single flight, delivering 68 pounds at a hover and another 70 pounds while in forward flight at 65 feet.

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The Chaparral drone can carry over 500 pounds of supplies up to 724 km and autonomously deliver them even without communication.

To reduce risks for frontline personnel, the Army collaborated with Elroy Air this year to develop three delivery modes for the Chaparral: precision hover drops, precision drops during horizontal flight, and autonomous ground delivery after landing. The drone's pre-programmed software allows it to complete missions independently, enhancing logistical resilience in hazardous environments.

Elroy Air emphasizes that challenging logistics, including maritime resupply and supporting dispersed units, is a major issue for joint forces. A single Chaparral can deliver supplies to multiple locations in one mission, eliminating the need for pilots to face risks and for personnel to be present at drop zones. Kratos will be responsible for future mass production, with the first units expected by the end of 2026. The Chaparral has also been evaluated by the U.S. Air Force, U.S. Navy, and U.S. Marine Corps, and Japan's Ground Self-Defense Force has signed an evaluation agreement.

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Challenging logistics, including maritime resupply and supporting dispersed units, is a major issue for joint forces.