Elroy Air, a California-based developer of autonomous aircraft, has selected defense contractor Kratos as the exclusive U.S. manufacturer of its Chaparral cargo drone.

The five-year partnership is intended to accelerate large-scale production of the hybrid-electric VTOL system, with the first unit set for production in 2026. Initial assembly will occur at Kratos’ Sacramento, California, site, before transitioning to full-rate manufacturing in Oklahoma, supporting local employment and supply chain growth.

Designed to carry up to 300 pounds (136 kilograms) of cargo across 300 miles (483 kilometers), the Chaparral is well-suited for military resupply, disaster relief, and commercial logistics. Its hybrid power system allows rapid refueling, in-flight battery recharging, and extended range compared to fully electric drones.

In August flight trials, the aircraft achieved a major milestone by transitioning from vertical takeoff to wingborne forward flight, improving overall efficiency.

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