Moving from Selection to Short-Term Mass Production and Delivery Phase for a Japan-Made Interceptor Drone
Tokyo, August 25, 2026 – Terra Drone Corporation (Headquarters: Shibuya-ku, Tokyo; Representative Director: Toru Tokushige; hereinafter “Terra Drone”) is pleased to announce that its Japan-made interceptor drone “Terra B1,” proposed under the “Interceptor Drone Early Acquisition Program” conducted by Japan’s Acquisition, Technology & Logistics Agency (ATLA), has passed the demonstration test and advanced to the next stage toward mass production.
Background
In the Middle East, low-cost attack unmanned aerial vehicles such as Shahed-type drones have been widely used, while defenders have often been forced to rely on expensive interceptor missiles. This has exposed challenges including the depletion of interceptor missiles and a growing imbalance in cost-effectiveness. In Ukraine, by contrast, the use of low-cost interceptor drones against Shahed-type and other attack UAVs has advanced rapidly and achieved high interception rates. Based on these operational lessons, Japan is also placing greater importance on using more cost-effective means to counter low-cost aerial threats.
On July 15, 2026, ATLA announced that “Terra B1” had been selected as one of the aircraft to be used in the demonstration test under this program. Following the previous announcement that Terra B1 had been selected from proposals submitted by 38 companies, Terra B1 has now solely passed the demonstration test, marking a major step forward for Terra Drone’s defense business into an implementation phase aimed at mass procurement. Terra Drone believes that Terra B1’s successful demonstration represents an important milestone, showing that the company’s interceptor drone is no longer merely in the development stage, but has advanced to the next phase toward strengthening Japan’s defense capabilities.
About This Program
This program was established in response to the rapidly increasing importance of attack UAVs and interceptor drones in today’s security environment. Its purpose is to enable the Japan Self-Defense Forces to acquire more effective drone countermeasure equipment with greater speed. According to ATLA’s published materials, the demonstration tests were scheduled for late July to early August 2026, followed by a mass procurement contract in late August and delivery around September 2026. This represents an extremely fast-track program design, moving from demonstration to mass procurement in approximately three months.
“Terra B1,” which has passed the demonstration test, is a Japan-made interceptor drone designed to counter long-range loitering UAVs, including Shahed-type drones.
ATLA’s requirements cover not only flight performance, but also items directly linked to operational deployment and mass procurement, including effective range, flight duration, flight distance, maximum and cruising speed, guidance method, number of aircraft that can be controlled simultaneously, launch and recovery methods, integration with other systems, safety measures, operational track record, and the period from contract signing to delivery.
Terra B1’s successful demonstration indicates that, based on these requirements, the aircraft has advanced to the next mass production stage not only in terms of interceptor drone performance, but also in terms of short-term supply, domestic production, and operational support systems including maintenance, replenishment, and training.
Future Plans
Following the successful demonstration test, Terra Drone will accelerate the development of production and supply systems for Terra B1 with a view to mass procurement.
Key initiatives include:
Commencement of mass production of Terra B1
Establishment of domestic production and procurement systems
Strengthening of supply chains, including components, batteries, communications, and control equipment
Development of operational support systems, including maintenance, replenishment, and training
System integration for operations at bases, vessels, and critical facilities
Enhancement of quality control and safety management systems required for defense applications
Terra Drone will combine the knowledge gained from operational environments including Ukraine with its capabilities as a Japanese company in domestic production, mass manufacturing, and regulatory response, and will advance the mass production of Japan-made interceptor drones.
This marks an extremely important milestone for Terra Drone as it advances the commercialization of its defense business in Japan following its full-scale entry into the defense sector. The company will continue to respond to discussions and procedures toward mass procurement while building a supply system for Japan-made interceptor drones that can be delivered in a short timeframe.
In addition, while the initial deployment is expected to begin with the Maritime Self-Defense Force, Terra Drone will also consider future expansion to operational needs within the Air Self-Defense Force and Ground Self-Defense Force, and will promote system adaptation and expansion according to the operational environments of each branch of the Self-Defense Forces.
Future Outlook
The impact of this matter on Terra Drone’s consolidated financial results for the current fiscal year is currently under review. However, the transition to the planning phase toward mass procurement is expected to make a significant contribution to the expansion of the company’s defense business and the enhancement of corporate value. Terra Drone will promptly disclose any material matters that should be announced in the future.
Sources
[1] Acquisition, Technology & Logistics Agency, “Decision on Demonstration Aircraft for the Interceptor Drone Early Acquisition Program”
[2] Acquisition, Technology & Logistics Agency, “Implementation of the Interceptor Drone Early Acquisition Program”
[3] Terra Drone, “Selected for ATLA’s Interceptor Drone Early Acquisition Program”
Inquiries Regarding This Business
Business Website：https://terra-defense.com/
Contact form：https://terra-defense.com/contact/
Terra Drone Corporation, Defense Division, Morita Email：defense@terra-drone.co.jp
Tel：+81-80-4329-7881
About Terra Drone Corporation
Under the mission “Unlock ‘X’ Dimensions” (fusing different dimensions to create a rich future), Terra Drone develops drones and provides related solutions. The company also focuses on deliveringUnmanned Traffic Management (UTM) systems to support safe and efficient drone operations, as well as pioneering UTM systems for flying cars targeted at overseas markets, contributing to a wide range of industries.
Terra Drone boasts a track record of more than 3,000 projects in the fields of surveying, inspection, agriculture, and flight management. In addition, the UTM systems provided through the Terra Drone Group have been implemented in 10 countries worldwide. As a result of these achievements, Terra Drone has ranked among the top two industrial drone service companies in the “Drone Service Companies World Ranking” published by Drone Industry Insights every year since 2019, and ranked No. 1 in the world in 2024. Furthermore, at the “Japan Startup Awards 2025” hosted by Japan’s Ministry of Economy, Trade and Industry, Terra Drone received the “Minister of Land, Infrastructure, Transport and Tourism Award” in recognition of its efforts to address social challenges in the land and infrastructure sector.
Looking ahead to the wider adoption of drones and flying cars, Terra Drone aims to solve social challenges as a “global platformer of the low-altitude economic zone.”
For more information: https://terra-drone.net/
Media Contact
PR Team, Terra Drone Corporation
Tel: +81-3-6419-7193
Email: pr@terra-drone.co.jp
