Terra Drone Selected for Japan’s ATLA Interceptor Drone Rapid Acquisition Program

Chosen following a competitive review of proposals from 38 companies; advancing to a demonstration phase toward volume procurement under requirements for a Japan-made system and an established domestic production base

Terra Drone Corporation, a leading drone and Urban Air Mobility technology company headquartered in Japan, announces that the interceptor drone proposed by the Company has been selected as a test article for demonstration testing scheduled for July 2026 under the “Interceptor Drone Rapid Acquisition Program” conducted by Japan’s Acquisition, Technology & Logistics Agency (“ATLA”).

ATLA received proposals from 38 companies and selected Terra Drone’s interceptor drone as one of the test articles following a comparative review of the submissions. The program is designed to move from initial acquisition to demonstration testing within approximately three months. If a system is determined to be suitable for operational use, ATLA aims to proceed rapidly with volume procurement and delivery (1). During this phase, the system’s flight performance, autonomous capabilities, shipboard operability, and communications and control capabilities will be evaluated comprehensively with potential Japan Maritime Self-Defense Force operations in mind.

The program explicitly requires the interceptor drone to be Japan-made and supported by an established domestic production base. As demonstrated by the war in Ukraine, maintaining a stable supply of interceptor drones—which may be consumed in large quantities during operations—requires domestic production capacity.

Terra Drone’s selection for this program, only approximately four months after its full-scale entry into the defense sector, represents an important milestone. The Company believes the selection reflects not only the capabilities of its interceptor drone, but also the strength of its business foundation for sustained domestic production and supply. Terra Drone’s speed in development and supply is aligned with Japan’s urgent need to strengthen its defense capabilities.

Background

Recent conflicts in Ukraine and the Middle East have seen the large-scale deployment of long-range one-way attack UAVs, including Shahed-type systems. These developments have highlighted the difficulty of relying solely on conventional, high-cost interceptor missiles to respond to such threats on a sustained basis.

As a result, interceptor drones that can be deployed and mass-produced rapidly at a comparatively lower cost are gaining importance as a new layer of air defense.

The threat posed by unmanned aircraft is also increasing rapidly in the security environment surrounding Japan. China has intensified UAV activities near Japan, and in fiscal year 2024, the WL-10 and GJ-2 reconnaissance and attack UAVs were observed near Japan for the first time in connection with Japan’s airspace surveillance activities (2).

Russia is expanding the large-scale production and deployment of the Geran-2, which is based on the Iranian-developed Shahed design. China is also reportedly advancing the large-scale production and deployment of one-way attack UAVs, including systems referred to as “Sunflower.” North Korea has announced plans to establish a mass-production system for one-way attack UAVs. New defense approaches premised on the large-scale use of unmanned aircraft have therefore become a direct security concern for the Asia-Pacific region (3).

On June 5, 2026, ATLA launched the Interceptor Drone Rapid Acquisition Program to acquire more rapidly deployable and operationally effective counter-UAV equipment. The program is intended particularly to address long-range one-way attack UAVs such as the Shahed and to assess the extent to which interceptor drones can strengthen the protection of Japan Self-Defense Force camps, bases, vessels, and other facilities (4).

Terra Drone’s Selection and Initiatives

Terra Drone Group has announced plans to make two Ukrainian interceptor drone companies its consolidated subsidiaries in Ukraine, where the development and operational deployment of defense and interception technologies for modern warfare are advancing rapidly.

These group companies have continued to develop and operate interceptor drones under combat conditions and have accumulated operational achievements, including successful interceptions of Shahed-type UAVs (5).

Based on the Group’s track record, Terra Drone submitted a proposal covering not only the interceptor drone’s functions and performance, but also an implementation framework for rapid supply, maintenance, logistics support, and training following delivery.

The demonstration will comprehensively evaluate capabilities directly related to operational use. These include fundamental performance such as range, speed, and guidance, as well as shipboard operation, autonomous flight, detection and tracking of long-range one-way attack UAVs, multi-drone operation, and fail-safe behavior in the event of a communications interruption.

The demonstration will also assess the operational support framework required for sustained use by the Japan Maritime Self-Defense Force, including maintenance, logistics support, and training.

Terra Drone is preparing the test article and operational framework for the demonstration scheduled for July 2026. At the same time, the Company will strengthen its production and support capabilities—including maintenance, logistics, and training—to enable a rapid transition to volume procurement and delivery following the demonstration.

By combining the operational foundation of its group companies, which have accumulated experience under combat conditions in Ukraine, with its capabilities as a Japanese company in domestic supply and regulatory compliance, Terra Drone will contribute to strengthening Japan’s air defense capabilities while further expanding its defense business.