Kratos Defense & Security Solutions, Inc. has formed a five-year strategic manufacturing agreement with Elroy Air to become the exclusive US manufacturer of the Chaparral hybrid-electric autonomous VTOL cargo drone. This partnership aims to boost production to meet rising demand in defense and commercial sectors. Elroy Air views Kratos as an ideal collaborator due to its established reputation in military unmanned aircraft and its robust supply chain. The Chaparral drone can carry 300 pounds over 300 miles, with initial production set to start in Sacramento in 2026.