Barq Group and Elroy Air to establish $200 million joint venture in Abu Dhabi to manufacture autonomous aircraft

Barq Group, a wise mobility and logistics options supplier within the MENA area, and Elroy Air, a US-based developer of autonomous aerial programs for middle-mile logistics, have introduced the signing of an settlement.

This collaboration between the events establishes the framework for a three way partnership (JV) that may make investments $200 million to construct a state-of-the-art manufacturing facility in Abu Dhabi to supply the Chaparral, an autonomous hybrid-electric vertical take-off and touchdown (VTOL) cargo UAS.

This manufacturing facility will provide Chaparral programs to industrial and humanitarian clients within the Center East and North Africa (MENA) area upon receipt of all vital approvals.

The JV may also present aftermarket providers, together with upkeep, restore, and overhaul (MRO). By establishing native manufacturing capability, the JV will meet the surging demand for autonomous logistics in a area characterised by fast growth and a necessity for resilient, middle-mile supply options.

The Chaparral is an industry-first autonomous plane constructed to hold 300 lbs of cargo over a 300 mile vary. Its hybrid-electric powertrain permits long-range missions with out the necessity for charging infrastructure, making it uniquely suited to the MENA area’s various geography.

Chaparral made historical past in November 2023 with the world’s first flight of a turbogenerator-hybrid-electric plane.

Ahmed AlMazrui, CEO of Barq Group, says: “Our partnership with Elroy Air is a testomony to Abu Dhabi’s place as a world chief in the way forward for mobility.

“This $200 million funding is greater than a producing settlement; it’s a dedication to constructing a self-sustaining aerospace ecosystem within the UAE.

“The huge demand we’re seeing from logistics suppliers throughout MENA makes it clear that native manufacturing is the one technique to scale successfully. Collectively, we’re redefining how items transfer throughout the area whereas supporting the ‘Make it within the Emirates’ initiative.”

The brand new enterprise aligns with Abu Dhabi’s Good and Autonomous Automobile Trade (SAVI) cluster aims, solidifying the emirate’s place as a “world chief” in sustainable transportation, based on a press release.

The partnership is predicted to contribute considerably to the native financial system by way of the creation of high-value aerospace jobs and the event of a sturdy regional provide chain.

Dr Andrew Clare, CEO of Elroy Air, says: “Demand for the Chaparral within the MENA area has been immense, surpassing our projections and highlighting the pressing want for infrastructure-independent logistics.

“Abu Dhabi is the best strategic hub for our first worldwide manufacturing footprint. By producing the Chaparral domestically with Barq Group, we aren’t solely lowering lead instances for our regional clients however guaranteeing the plane is in-built the identical atmosphere the place they’ll function.

“We’re thrilled to associate with a visionary chief like Ahmed AlMazrui to carry this next-generation functionality to the UAE.”

Following Elroy Air’s recently-announced home US manufacturing partnership with Kratos, the brand new JV will serve a rising backlog of demand for Chaparral which already exceeds 1,500 items globally from main logistics and aviation providers corporations together with FedEx, Bristow, and LCI.

Elroy Air just lately accomplished its first autonomous A to B cargo supply with the Chaparral. After the profitable completion of crucial flight milestones in the USA together with all vital approvals, Elroy Air and Barq Group plan to start flight operations within the UAE in 2027 utilizing US-built plane adopted by the beginning of native manufacturing in Abu Dhabi in 2028.