Japan’s Acquisition, Technology & Logistics Agency selected Terra B1 on 15 July after receiving proposals from 38 companies. Its accelerated programme was designed to move from testing to a production contract and delivery in about three months.
ATLA scheduled the demonstration phase for late July and early August, followed by a mass-purchase contract in late August. Delivery was planned for around September, giving Terra Drone little time to establish the manufacturing and support capacity needed for operational use.
The programme reflects a shift in the economics of air defence. Low-cost attack drones have been deployed extensively in the Middle East, while intercepting them with expensive missiles has placed pressure on weapon stocks and increased the cost of each engagement.
Ukraine has taken a different approach by using cheaper interceptor drones against Shahed-type and other attack UAVs. Terra Drone said it would draw on knowledge from such operational environments when preparing Terra B1 for production and service in Japan.
Terra B1 is intended to counter long-range loitering UAVs, including Shahed-type drones. ATLA examined not only its range, endurance and speed, but also guidance, simultaneous aircraft control, launch and recovery, safety and integration with other systems.
The evaluation also tested whether the system could be supplied and supported at scale. Delivery times, domestic production, operational experience, maintenance, replenishment and training were all part of the agency’s requirements.
Terra Drone will now focus on production capacity and the resilience of its Japanese supply chain. That work covers components, batteries, communications and control equipment, alongside tighter quality and safety controls for defence use.
The company is also preparing support arrangements and adapting Terra B1 for deployment at bases, aboard vessels and around critical facilities. After an expected initial introduction by the Maritime Self-Defence Force, Terra Drone plans to consider versions tailored to the Air and Ground Self-Defence Forces.
The effect on Terra Drone’s consolidated results for the current financial year is still being assessed. The company expects progress towards a mass order to expand its defence business and said it would announce any material financial developments.
