{"id":12712,"date":"2026-07-27T18:00:50","date_gmt":"2026-07-27T09:00:50","guid":{"rendered":"https:\/\/terra-drone.net\/global\/?p=12712"},"modified":"2026-07-27T12:47:43","modified_gmt":"2026-07-27T03:47:43","slug":"27927","status":"publish","type":"post","link":"https:\/\/terra-drone.net\/global\/2026\/07\/27\/27927\/","title":{"rendered":"Terra Drone Enters Japan-Made Battery Business for Drones"},"content":{"rendered":"<p><em><strong>Key Points: Building a Japan-Based Production System to Strengthen the Supply Base for Defense and Industrial Applications<\/strong><\/em><\/p>\n<p><strong>Tokyo, July 27, 2026<\/strong> \u2013 Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, announced that it will establish a Japan-based mass production system for high-output drone battery packs using cylindrical cells.<\/p>\n<p>Terra Drone\u2019s business partner in this initiative has a proven track record of supplying up to approximately 500,000 battery packs in total to major Japanese consumer electronics manufacturers, supported by strong quality control and safety management capabilities.<\/p>\n<p>In addition to using the batteries for its own industrial and defense drones, Terra Drone plans to sell them to other drone manufacturers in Japan and overseas, building a new business foundation following its drone aircraft business.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-12714 size-full\" src=\"https:\/\/terra-drone.net\/global\/wp-content\/uploads\/2026\/07\/KV_260727_\u56fd\u7523\u96fb\u6c60.png\" alt=\"\" width=\"1200\" height=\"629\" srcset=\"https:\/\/terra-drone.net\/global\/wp-content\/uploads\/2026\/07\/KV_260727_\u56fd\u7523\u96fb\u6c60.png 1200w, https:\/\/terra-drone.net\/global\/wp-content\/uploads\/2026\/07\/KV_260727_\u56fd\u7523\u96fb\u6c60-300x157.png 300w, https:\/\/terra-drone.net\/global\/wp-content\/uploads\/2026\/07\/KV_260727_\u56fd\u7523\u96fb\u6c60-1024x537.png 1024w, https:\/\/terra-drone.net\/global\/wp-content\/uploads\/2026\/07\/KV_260727_\u56fd\u7523\u96fb\u6c60-768x403.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h4><strong>Background<\/strong><\/h4>\n<p>According to the Cabinet Secretariat of Japan, the number of registered unmanned aircraft weighing 100 grams or more in Japan exceeded 447,000 as of December 2025, growing at an average annual rate of more than 15%. Meanwhile, in the global industrial drone market, Chinese companies account for approximately 90% of the market, and Japan remains highly dependent on overseas supply chains.<\/p>\n<p>The Japanese government has identified batteries as critical components that directly affect the operation of drone aircraft. However, high-output drone battery packs using cylindrical cells, which are required for drone-specific applications, are difficult to replace with general-purpose batteries used in products such as PCs, automobiles, and medical devices. In Japan, there are extremely few companies capable of supplying such batteries at prices suitable for mass-produced drones.<\/p>\n<p>At present, there are no domestic Japanese companies that can simultaneously meet the requirements for high output, mass production, price competitiveness, and immediate supply to the defense industry. As a result, many companies currently rely on overseas manufacturers in countries and regions such as China and Taiwan.<\/p>\n<p>The heavy concentration of supply in specific countries has also created supply chain risks, with past cases in which supply from overseas manufacturers was disrupted. (1)<\/p>\n<h4><strong>Overview of the Initiative<\/strong><\/h4>\n<p>Terra Drone will define the required specifications for drone aircraft batteries, while its business partner will utilize its existing facilities, personnel, mass production expertise, and quality control know-how.<\/p>\n<p>Through this collaboration, Terra Drone will establish a system in Japan for battery pack design, assembly, inspection, and quality assurance.<\/p>\n<h4><strong>Strengths of This Business<\/strong><\/h4>\n<p><strong>1. Established Mass Production Capabilities in Japan<\/strong><\/p>\n<p>Terra Drone\u2019s business partner has previously supplied up to approximately 500,000 battery packs in total. By utilizing existing facilities and mass production know-how, the company aims to reduce launch risk and achieve early mass production while ensuring high levels of quality and safety.<\/p>\n<p><strong>2. High Safety and Quality Through Cylindrical Cells Proven in Defense Drone Applications<\/strong><\/p>\n<p>Terra Drone will adopt cylindrical cells rather than pouch cells. Cylindrical cells offer strong durability and safety against mechanical shock and vibration, and have already been widely adopted globally.<\/p>\n<p>By using cylindrical cells, Terra Drone aims to provide batteries with the reliability and quality required for defense applications. In addition, by using non-Chinese components that meet U.S. NDAA compliance standards, the company will significantly reduce supply chain risks in contingency situations.<\/p>\n<p>Cylindrical-cell batteries are also widely used in defense drone applications and are estimated to hold approximately 90% market share in Ukraine\u2019s defense drone battery market.<\/p>\n<p><strong>3. Recurring Revenue Through External Sales and Replacement Demand<\/strong><\/p>\n<p>Terra Drone will not only procure batteries for its own drones, but will also sell them to major heavy industry companies, domestic drone startups, overseas drone manufacturers, and traditional domestic defense prime companies as a component business.<\/p>\n<p>Batteries are consumable components that require replacement due to training, operation, and degradation. In general drone systems, batteries account for more than one-quarter of the aircraft price, creating ongoing demand for replacement and spare batteries even after the initial aircraft sale.<\/p>\n<p><strong>4. Global Sales Network<\/strong><\/p>\n<p>Terra Drone will utilize its overseas offices, sales network, and customer base to sell batteries to industrial and defense drone manufacturers outside Japan that require trusted and reliable supply chains.<\/p>\n<h4><strong>Future Outlook<\/strong><\/h4>\n<p>In line with the Japanese government\u2019s and Ministry of Defense\u2019s policies to strongly promote domestic production, Terra Drone will work to establish early prospects for the Japan-based production of batteries, which are critical drone components.<\/p>\n<p>Going forward, Terra Drone will also work closely with small and medium-sized manufacturers in Japan to promote the domestic production of other key components, including motors and controllers.<\/p>\n<p>Terra Drone aims to expand its business from a company that sells drone aircraft into a global company that plays a key role in the drone industry\u2019s supply chain, thereby contributing to sustainable corporate value creation.<\/p>\n<h4><strong>Outlook (Impact on Financial Results)<\/strong><\/h4>\n<p>While we believe this matter will contribute to the enhancement of the Company\u2019s corporate value over the medium to long term, its impact on Terra Drone\u2019s consolidated financial results for the fiscal year ending January 2027 is expected to be minimal at this time. Should any matters requiring disclosure arise in the future, we will promptly make an announcement.<\/p>\n<h4><strong>Editor\u2019s Notes<\/strong><\/h4>\n<p>1 Cabinet Secretariat of Japan, \u201cChallenges in Ensuring the Stable Supply of Critical Goods,\u201d October 29, 2025.<\/p>\n<h4><strong>Contact Information Regarding Defense Business<\/strong><\/h4>\n<p>Business Website\uff1a<a href=\"https:\/\/terra-defense.com\/\">https:\/\/terra-defense.com\/<\/a><br \/>\nContact Form\uff1a<a href=\"https:\/\/terra-defense.com\/contact\/\">https:\/\/terra-defense.com\/contact\/<\/a><br \/>\nTerra Drone Corporation, Defense Division,\u00a0 Morita<br \/>\nEmail\uff1adefense@terra-drone.co.jp<br \/>\nTEL\uff1a080-4329-7881<\/p>\n<h4><strong>About Terra Drone Corporation<\/strong><\/h4>\n<p>Terra Drone Corporation, headquartered in Japan, is a global leader in drone and Advanced\u00a0 Air Mobility (AAM) solutions. Dedicated to the mission of \u201cUnlock \u2018X\u2019 Dimensions\u201d, the company is committed to creating a prosperous future by &#8220;crossing&#8221; bridges\u2014integrating diverse fields to foster innovation and find solutions. Specializing in surveying, inspections, agriculture, and UAS Traffic Management (UTM), Terra Drone serves industries such as oil and gas, construction, chemicals, energy, and agriculture.<\/p>\n<p>With a portfolio of over 3,000 completed projects worldwide, Terra Drone has achieved significant milestones in the drone operations field. In July 2023, the company acquired a majority stake in Unifly, a world-leading provider of UTM platform, with deployments in over eight countries.Terra Drone was listed on the Tokyo Stock Exchange Growth Market (Stock Code: 278A) on November 29, 2024. It also secured top spot in Global Drone Service Provider Rankings for 2024. Furthermore, at the <i>Japan Startup Awards 2025<\/i> hosted by the Ministry of Economy, Trade and Industry (METI), Terra Drone was honored with the <i>Minister of Land, Infrastructure, Transport and Tourism (MLIT) Award<\/i> in recognition of its initiatives addressing social challenges in the infrastructure and transportation sector.<\/p>\n<p>Recognized by Drone Industry Insights as one of the top three industrial drone service providers globally for five consecutive years, Terra Drone aims to build the digital infrastructure necessary to unlock the full potential of drones and AAM solutions. For more information, please visit our website: <a href=\"http:\/\/www.terra-drone.net\">http:\/\/www.terra-drone.net<\/a><\/p>\n<h4><strong>Media Contact<\/strong><\/h4>\n<p>PR Team, Terra Drone Corporation<br \/>\nTel: +81-3-6419-7193<br \/>\nEmail: <a href=\"mailto:pr@terra-drone.co.jp\">pr@terra-drone.co.jp<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Points: Building a Japan-Based Production System to Strengthen the Supply Base for Defense and Industrial Applications Tokyo, July 27, 2026 \u2013 Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, announced that it will establish a Japan-based mass production system for high-output drone battery packs using cylindrical [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/posts\/12712"}],"collection":[{"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/comments?post=12712"}],"version-history":[{"count":5,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/posts\/12712\/revisions"}],"predecessor-version":[{"id":12718,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/posts\/12712\/revisions\/12718"}],"wp:attachment":[{"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/media?parent=12712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/categories?post=12712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/terra-drone.net\/global\/wp-json\/wp\/v2\/tags?post=12712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}