Autonomous cargo drone developer Elroy Air aims to churn out hundreds of aircraft per year with the help of a new, exclusive partnership.
Elroy on Tuesday announced it selected defense contractor Kratos as the U.S. manufacturing partner for its Chaparral, which is designed to autonomously carry 300 pounds of cargo over 300 miles. Under the five-year agreement, the partners intend to build the first production-intent Chaparral aircraft in 2026 before ramping up to high-rate production.
“We’re going to start small but grow quite rapidly,” Andrew Clare, CEO of Elroy, told FLYING. “One of the things that I’m excited about with Kratos is just how rapidly and how quickly they can scale.”
Kratos specializes in jet-powered, composite uncrewed aircraft such as the XQ-58 Valkyrie, which it delivers to customers such as the U.S. military. Over the summer, it expanded its manufacturing capabilities to develop new systems for self-flying aircraft such as Chaparral. Elroy founder and executive chairman David Merrill said the long-range drone resembles designs Kratos already produces.
“I’ve been impressed with the way Kratos is getting after the development of drones in this similar scale in terms of aircraft size to ours, and the speed at which they develop and field new systems,” Merrill said.
Developing a Drone
Merrill described Elroy as a “pragmatic integrator” of flight-proven systems such as engines and motors. “What we’ve done,” he said, “is develop the unique elements that didn’t previously exist.”
The company’s expertise lies in hybrid-electric powertrains, software stacks, and an airframe configured for vertical takeoff and landing (VTOL). In August, Elroy’s preproduction Chaparral C1 completed its first transition from hover to forward flight, validating its runway independence.
While its competitors have pursued a vertical model—handling tasks such as manufacturing in-house—Elroy leverages off-the-shelf components and third-party support. Merrill said the strategy gives it a quicker path to market.
“We’re taking a different approach here, where we found a partner that is great at accelerating the parts that we haven’t built core expertise in, and we have a unique solution that they don’t have,” Merrill said.
Elroy bills Chaparral as a dual-use aircraft for civilian and military missions, from middle-mile logistics to humanitarian aid. The drone’s hybrid-electric powertrain feeds eight vertical and four forward propellers, with a turbogenerator that charges its batteries in flight. It cruises fully autonomous at about 143 mph. On the ground, it can autonomously pick up and deposit a family of modular cargo pods the company developed.
Merrill said Kratos “made it clear” that it is interested in supplying Chaparral to both commercial and military customers. Initial production will take place at the company’s plant in Sacramento, California, before expanding to facilities in Oklahoma City.
“It’s a market expansion for them, and it’s an accelerant for us,” Merrill said.
As it looks ahead to scaling up, Elroy is seeking a defense airworthiness approval with its military customers. The firm has active contracts with the U.S. Marine Corps, Army, and Air Force at a time when the government is seeking billions of dollars to fund new uncrewed systems. Clare told FLYING the company recently concluded a test campaign with the Japan Ground Self-Defense Forces.
At the same time, Elroy is pursuing commercial certification with the FAA. Earlier this month, it conducted a 25-mile Chaparral transition flight in front of about 30 stakeholders, including current and prospective investors as well as representatives from Kratos and customer Bristow Group.
Elroy personnel recently paid a visit to Bristow’s Houma-Terrebonne Airport (KHUM) hub in Louisiana, where they are working to integrate Chaparral into its fleet ahead of a planned commercial deployment.
The company is also looking to participate in the White House-directed electric vertical takeoff and landing (eVTOL) Integration Pilot Program (eIPP). At least five eIPP projects will study a range of eVTOL operations to generate data that could shape future regulations.
“I’m very excited about that program,” Clare said. “We’ve been in active discussions with our locality and the FAA for quite some time about it and are looking forward to releasing more about that in the future.”
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