Elroy Air Wins $46 Million US Contract for Chaparral Hybrid-VTOL Cargo Drone

US-based Elroy Air has won a $46,058,871 firm-fixed-price Phase III Small Business Innovation Research (SBIR) contract for the development of its autonomous Group IV hybrid-electric vertical take-off and landing (VTOL) cargo drone, Chaparral. The award appeared in the US Department of War’s contract announcements published on August 17.

At a Glance

Contract value: $46,058,871, firm-fixed-price Phase III SBIR.
Work will be performed at Elroy Air’s facilities in South San Francisco, California.
Estimated completion date: February 18, 2029.
Chaparral is a hybrid-electric VTOL aircraft with eight vertical-lift propellers and four forward-flight propellers.
Current specifications list a payload of 500-plus pounds, a range of roughly 450 miles and a cruise speed of 132 mph.

Background

Elroy Air has spent years maturing Chaparral under the US Air Force’s AFWERX Agility Prime programme, demonstrating autonomous transition from vertical to forward flight in 2025 and reaching a reported 70 mph during those tests. Using LiDAR-based perception and ultra-wideband identification technology, the aircraft can autonomously locate and pick up cargo pods that can carry supplies, sensors or fuel. The new Phase III contract signals the platform is moving closer to operational use in military resupply and logistics missions.

Regional Impact

Autonomous hybrid-VTOL cargo drones offer lower risk and lower cost than crewed helicopters for resupplying remote or contested front lines — a trend closely watched by the US military and several NATO allies alike. In Türkiye, organisations such as ASELSAN and TUSAŞ are pursuing their own R&D on autonomous logistics and cargo-carrying systems; large-scale production awards like Elroy Air’s serve as a global benchmark showing the field is moving from experimental demonstrations into serial production and supply chains.

FAQ

What is Chaparral?
An autonomous, hybrid-electric VTOL cargo drone developed by Elroy Air.

What does the contract cover?
Development of the Group IV autonomous hybrid-VTOL platform for modular, multi-mission payload delivery.

When will the system become operational?
The contract’s estimated completion date is February 2029, with development and testing continuing until then.