Elroy Air wins $46M U.S. Army contract for cargo drone

Elroy Air, Inc. has been awarded a $46 million, multi-year contract with the U.S. Army to develop an autonomous hybrid-electric vertical take-off and landing (VTOL) uncrewed aircraft system for modular multi-mission payload delivery, according to a company statement.

The contract builds on previous U.S. Army agreements over the past two years and will focus on the company's heavy-cargo drone, the Chaparral, which is designed to operate in contested and austere environments. The program will also advance technologies including GPS-denied navigation, cyber-protected communication links, an expeditionary mobile mission planner, and autonomous field operations 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.

The Chaparral is capable of carrying more than 500 pounds of cargo, requires no runway or fixed infrastructure, and has a claimed range of up to 450 miles using a hybrid-electric powertrain. Its modular pod system allows reconfiguration across multiple payload types.

Elroy Air said it plans to begin manufacturing the Chaparral in the United States later this year through a partnership with Kratos Defense & Security Solutions (Nasdaq: KTOS).

Separately, Elroy Air has entered into a business combination agreement with Columbus Circle Capital Corp II (Nasdaq: CMII), a special purpose acquisition company, which would result in Elroy Air becoming a publicly traded company under the ticker Nasdaq: IPXG.

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