Kratos Defense & Security Solutions has been named Elroy Air’s exclusive US manufacturing partner for the Chaparral VTOL drone, in a five-year agreement to accelerate high-volume production. The move leverages Kratos’ mature unmanned aircraft systems factory line, supply chain and quality credentials to scale Chaparral from prototype to mass production for defense and commercial customers. Initial assembly will occur at Kratos’ Sacramento, California facility, with a planned transition to high-rate production at the company’s Oklahoma City plants as demand grows. The program aims to deliver production Chaparral VTOL drone airframes in 2026, a timeline that reflects a broader push in the United States to localize critical drone manufacturing and reduce reliance on foreign suppliers. For Elroy Air, the partnership is meant to unlock a global addressable market by combining Chaparral’s capability with Kratos’ manufacturing throughput and cost discipline.

Scale and Production Fit

Kratos operates a core suite of facilities designed for high-volume, cost-efficient production of unmanned systems. The Sacramento site will handle initial Chaparral VTOL drone assembly, leveraging existing composites capabilities and a broad supplier network. Oklahoma City will host the high-rate production line, enabling the program to ramp up to hundreds of units per year as orders from defense and commercial customers materialize. The arrangement strengthens the domestic supply chain for critical UAS and reduces dependencies on foreign suppliers in key aerospace segments. For defense planners, the message was unmistakable: scale matters as much as capability when bringing autonomous cargo capabilities into sustained service. The Chaparral VTOL drone’s hybrid-electric powertrain, which enables rapid recharging and extended endurance, benefits from Kratos’ propulsion expertise and tested supply chains, accelerating throughput without sacrificing reliability.

Dual-Use Market Trajectory

The Chaparral program sits at the intersection of military logistics, disaster response and commercial express delivery. By producing Chaparral in the United States, Kratos helps Elroy Air address a broad set of customers—from defense resupply missions to city-to-city parcel networks that demand fast, autonomous cargo. The vehicle’s 300-pound payload and 300-mile range, powered by a hybrid-electric system, position Chaparral to bridge logistical gaps that traditional fixed-wing cargo cannot reach. The five-year plan anticipates a steady cadence of qualification and production milestones, supported by a growing ecosystem of suppliers and integrators. The partnership aligns with a broader trend toward primes collaborating with specialized manufacturers to meet demand for affordable, scalable UAS across civil and defense markets.

Kratos and Elroy Air plan to showcase Chaparral at the Miramar Air Show, signaling industry interest in hybrid-electric cargo drones and helping buyers and policymakers assess feasibility, safety and cost at scale.

Conclusion

The exclusive U.S. manufacturing pact for the Chaparral VTOL drone marks a tangible step toward mass production of next-generation autonomous cargo aircraft. By pairing Elroy Air’s mid-mile logistics ambitions with Kratos’ scale manufacturing and affordability ethos, the industry gains a credible path to large-volume deployment in defense and civilian markets. As UAS demand accelerates and regulatory pathways mature in the United States and abroad, such collaborations are likely to become the norm rather than the exception. For operators and policymakers alike, the signal is clear: scale and reliability can redefine the economics of autonomous air logistics, unlocking faster resupply, improved disaster response, and new commercial models across the supply chain.