Japanese Drone Firm Backing Ukrainian Interceptors Wins First Defense UAV Contract in Japan

Japanese drone company Terra Drone has secured its first defense contract with Japan’s Ministry of Defense after winning a public tender to supply 300 domestically produced modular unmanned aerial vehicles, according to a company statement published on May 8.

The contract, awarded through Japan’s Acquisition, Technology & Logistics Agency (ATLA), is valued at 115.4 million yen, or roughly $800,000. The drones are scheduled for delivery by September 30, 2026.

According to Terra Drone, the order marks the company’s first major defense procurement contract shortly after its “full-scale entry into the defense sector.”

The project includes the production and delivery of 300 “Modular UAV (General-Purpose), Training Model” systems for ATLA, the procurement and technology agency operating under Japan’s Ministry of Defense.

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In its statement, Terra Drone said the contract demonstrates “the competitiveness of its technological capabilities, development speed, and supply structure,” as well as the company’s ability to respond to growing defense demand in Japan.

The company added that Japan’s draft fiscal 2026 budget allocates approximately 277.3 billion yen, or about $1.9 billion, toward strengthening defense capabilities related to unmanned systems. According to Terra Drone, the expansion reflects Tokyo’s broader effort to increase domestic drone production and reinforce defense supply chains.

Terra Drone has recently expanded cooperation with Ukraine’s drone sector. The company previously announced plans to scale production of Ukrainian-made Terra A1 and Terra A2 interceptor drones and invest in future jet-powered unmanned systems.

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In Ukraine, the interceptor drones are manufactured by Amazing Drones, which has already secured Japanese investment through cooperation with Terra Drone.

Founded in Japan, Terra Drone operates in drone services, urban air mobility, and unmanned traffic management systems. The company was listed on the Tokyo Stock Exchange Growth Market in November 2024 and has previously ranked among the world’s leading industrial drone service providers.

Earlier, Terra Drone announced plans to scale production of Ukrainian-made Terra A1 and Terra A2 interceptor drones produced by Amazing Drones in Ukraine, while also preparing investments in next-generation jet-powered UAV systems.

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