Shield AI is on track to commence flight testing of its X-BAT unmanned combat aircraft prototype before the end of the year, supported by a new $150 million commitment from the U.S. Navy, company officials announced.

Armor Harris, Shield AI’s senior vice president of aircraft, confirmed that two full-scale prototypes are currently in production. “The first one will be done in the next couple of weeks here,” Harris said. Once complete, the program will move directly into vertical takeoff and landing (VTOL) flight testing by the end of the year to serve as the final technology de-risking phase.

The funding round, executed as a modification to an other transaction agreement (OTA), requires Shield AI to match the Navy’s contribution with private capital. This brings total planned development spending for the project to $400 million, building on an earlier $50 million investment from the Navy and the Defense Innovation Unit (DIU) in August, which Shield also matched.

Harris highlighted that X-BAT was developed in close partnership with the Naval Air Systems Command (NAVAIR) and the Naval Air Warfare Center Aircraft Division (NAWCAD). Development funding has flowed through the Navy’s newly established Rapid Capability Cell, with the current $150 million package representing the next phase of support.

Additionally, the company recently identified two locations designated for production and flight testing of the autonomous jet.

Under the terms of the contract, disbursement of Navy funds is contingent upon Shield AI achieving specific developmental milestones.

Harris indicated that a follow-on phase is anticipated should the platform continue to perform well, ultimately aiming for an early operational capability by 2029. “The way that the OTA is structured is that there’s milestone-based payments for Shield achieving specific objectives along the way,” he explained.

Beyond domestic sales to the Pentagon, Shield AI plans to export the aircraft globally.

Harris cited significant international demand driven by the jet’s multi-role flexibility, runway independence, and favorable cost-per-effect metrics. He noted that foreign customers are primarily interested in augmenting existing F-35 and F-16 fleets, or operating in nations lacking the infrastructure required to support aircraft as complex as the F-35.

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