U.S. Army Awards Elroy Air $46 Million Cargo Drone Deal

US Army awards Elroy Air $46M for heavy-lift drone

Heavy-lift drone developer Elroy Air has secured a major vote of confidence from the US Army. The California-based company announced it has been awarded a $46 million multi-year contract to further develop its autonomous hybrid-electric VTOL (vertical take-off and landing) cargo drone, with the goal of making it more capable of supporting troops in some of the military’s toughest operating environments.

Elroy Air Awarded $46M U.S. Army Contract

SAN FRANCISCO--(BUSINESS WIRE)--Aug 18, 2026-

U.S. Army awards Elroy Air $46 million cargo drone deal

The U.S. Army has awarded Elroy Air a $46 million contract to develop an autonomous, hybrid-electric VTOL aircraft for modular cargo delivery, according to a Department of War contract announcement. The Phase III Small Business Innovation Research award covers development of a Group IV unmanned aircraft system, a Pentagon classification for larger drones weighing more […]