Shield AI has selected Des Moines, Washington, and Newton, Kansas, to anchor the production and flight testing of its X-BAT autonomous vertical takeoff and landing (VTOL) fighter jet, a program projected to support nearly 10,000 jobs and generate $78 billion in regional economic impact over the next two decades.

The September 30 announcement outlines a major industrial scale-up for the San Diego-based defense technology company. In a press release, Shield AI detailed plans to establish its primary manufacturing hub in the Pacific Northwest while centralizing flight testing and sustainment operations in the Midwest.

Manufacturing footprint in the Pacific Northwest

The company will establish its primary production center, designated X-Forge 3, in Des Moines, Washington. The 420,000-square-foot facility is being developed by Panattoni on property owned by the Port of Seattle, located within the Des Moines Creek 2 light industrial park.

According to local officials, the Des Moines site represents an estimated $300 million direct investment in the city. Shield AI projects the facility will support 8,000 jobs in the Seattle-Tacoma-Bellevue region by the early 2030s, with an estimated average annual salary of $150,000 for workers at the site.

The location leverages the established aerospace manufacturing base in the Puget Sound region. Armor Harris, Senior Vice President of Aircraft at Shield AI, noted the area has been producing aircraft at high rates for seventy years and possesses the necessary engineers, technicians, and suppliers.

Des Moines Mayor Yoshiko Grace Matsui welcomed the development, highlighting the city’s connection to the broader regional industry.

“Des Moines is known for its historic charm, beautiful marina, and stunning Puget Sound setting. But we are also a community of builders who helped build the world’s most innovative aerospace economy,” Matsui said.

Flight testing and sustainment in the Midwest

While manufacturing will take place in Washington, every X-BAT will undergo flight testing in Newton, Kansas, before delivery to customers. The Newton site, designated X-Forge 2, will also serve as the long-term sustainment hub for the fleet.

Shield AI projects the Kansas operations will support 1,800 jobs in the Newton area by the early 2030s, growing to 2,900 jobs by 2046. The company estimates the facility will add $5 billion to the regional economy over the next two decades.

State and federal representatives highlighted the region’s deep aviation history as a key factor in the selection. U.S. Congressman Ron Estes stated that Shield AI chose Newton because of the experience of Kansans who have been building and flying airplanes for more than a century.

Kansas Lieutenant Governor and Secretary of Commerce David Toland echoed this sentiment, noting that the state’s aviation expertise will help keep the X-BAT fleet flying for decades.

Production timeline and the X-BAT program

Founded in 2015, Shield AI focuses on developing intelligent systems to protect service members. The company is known for its Hivemind autonomy software and the V-BAT Group 3 unmanned aircraft system (UAS). The X-BAT represents a significant expansion into full-scale combat aircraft.

First unveiled publicly in 2025, the X-BAT is an AI-piloted fighter jet designed with eVTOL capabilities. The aircraft is engineered to operate independently of traditional runways, allowing it to launch from austere locations, roads, clearings, or maritime vessels. This design addresses the strategic vulnerability of fixed airbases to long-range missile attacks, providing what the company describes as runway-independent airpower.

The production announcement follows a series of recent milestones for the company’s autonomy architecture. On September 28, 2026, Shield AI and Kraken Technology Group demonstrated Hivemind-enabled autonomous maritime teaming, showcasing the versatility of the software that will pilot the X-BAT. Earlier in the year, on April 20, the U.S. Navy selected Shield AI to compete for $800 million in intelligence, surveillance, and reconnaissance services using the V-BAT platform.

The X-Forge 3 facility in Washington is expected to open in the spring of 2027. Local officials and company executives anticipate the first X-BAT will roll off the production line in 2028. Shield AI’s official timeline states that formal production is planned to begin in 2029. This slight variance likely reflects the transition from initial low-rate prototype completion to the commencement of full-scale manufacturing.

By the early 2030s, the program is expected to reach full-rate production, delivering approximately 150 aircraft per year. The company also maintains a prototyping facility, designated X-Forge 1, in Frisco, Texas.

AirPro News analysis

The decision to split production and testing between Washington and Kansas reflects a maturing industrial strategy for autonomous combat aircraft. By locating manufacturing in the Puget Sound region, Shield AI can tap into an existing, highly skilled aerospace workforce and a dense supplier network built around legacy commercial and defense programs. Conversely, placing flight testing in Kansas provides access to less congested airspace and a regulatory environment accustomed to experimental and developmental flight operations. We view this dual-hub approach as a necessary step for scaling production of autonomous systems, moving the industry away from boutique prototyping and toward the high-volume manufacturing rates required by modern defense strategies.

The U.S. Coast Guard has awarded a $735 million contract to Lockheed Martin Aeronautics for six baseline C-130J Super Hercules aircraft, expanding its long-range surveillance fleet to 25 airframes.

Announced in a press release on October 2, 2026, the acquisition leverages existing U.S. Air Force contracts and utilizes funding from the fiscal year 2025 One Big Beautiful Bill Act. The order continues the service’s ongoing transition from legacy C-130H models to the more capable J-variant, which will eventually undergo missionization to become HC-130J aircraft equipped for search and rescue, counterdrug operations, and maritime interdiction.

Procurement strategy and delivery timeline

The contract was officially awarded on September 24, 2026, just before the close of the federal fiscal year. By leveraging established U.S. Air Force (USAF) procurement channels, the Coast Guard secured the airframes under an existing production framework. All six aircraft will be manufactured at the Lockheed Martin Aeronautics facility in Marietta, Georgia.

The Coast Guard expects to receive the first of the newly ordered baseline C-130J aircraft in fiscal year 2028. Deliveries for the remaining five airframes are scheduled to conclude by the end of fiscal year 2030.

Following delivery from Lockheed Martin, the aircraft will not immediately enter service. The Coast Guard will award separate contracts to configure the baseline C-130J airframes with specialized equipment required for Department of Homeland Security (DHS) missions. This separate missionization process upgrades the aircraft to the HC-130J standard, integrating advanced sensors, radar systems, and communication suites necessary for alien interdiction and search and rescue operations.

Michael Haycock, Director of Systems Integration for the Coast Guard, emphasized the operational impact of the acquisition.

“The HC-130J is the largest and most capable airlift asset for the Coast Guard and the Department of Homeland Security. Expanding our fleet supports the most critical Coast Guard missions and those of our DHS partners.”

Fleet modernization and performance gains

The $735 million acquisition draws from a larger pool of $1.412 billion allocated for fixed-wing aircraft under the fiscal year 2025 One Big Beautiful Bill Act. This funding supports the Coast Guard’s long-term strategy to replace its aging fleet of C-130H Hercules aircraft with the modernized Super Hercules.

The C-130J introduces significant performance improvements over the legacy H-models. Equipped with advanced engines and composite propellers, the J-variant provides a 20 percent increase in both speed and maximum altitude. The upgraded propulsion and aerodynamic refinements also deliver a 40 percent increase in operational range, a critical metric for a service tasked with patrolling vast maritime environments.

Transitioning operations at Air Station Sacramento

The six-aircraft order follows a major operational milestone for the Coast Guard’s aviation division. On September 10, 2026, the service delivered its first HC-130J to Air Station Sacramento in California, marking the expansion of Super Hercules operations to a new base. A formal ceremony commemorating the delivery was held the following day.

Vice Adm. Joseph Buzzella, Commander of U.S. Coast Guard Pacific Area, highlighted the strategic value of the new airframe for West Coast operations.

“This is a monumental step forward for Air Station Sacramento and the future of Coast Guard aviation. The HC-130J will be critical to detecting and interdicting migrant and narcotics flows through the maritime approaches to our nation.”

The arrival of the HC-130J in Sacramento coincides with the retirement of the Coast Guard’s Alenia C-27J Spartan fleet. According to AeroCorner, the C-27J aircraft were never fully outfitted for Coast Guard missions due to a lack of congressional funding for their dedicated mission-system program. The transition to the HC-130J provides Air Station Sacramento with a fully integrated, purpose-built platform.

With the addition of the Sacramento facility, the Coast Guard now operates the HC-130J out of four primary air stations. The other active bases include Elizabeth City, North Carolina; Kodiak, Alaska; and Barbers Point, Hawaii.

AirPro News analysis

The decision to replace the C-27J Spartan fleet with additional HC-130J aircraft reflects a broader standardization strategy within Coast Guard aviation. Operating a mixed fleet of medium and heavy surveillance aircraft introduces complex maintenance, training, and supply chain requirements. By consolidating its long-range fixed-wing operations around the C-130J platform, the Coast Guard eliminates the logistical overhead of the unsupported C-27J program. Furthermore, routing the $735 million purchase through existing USAF contracts allows the Coast Guard to benefit from economies of scale and established production timelines that a standalone procurement program could not achieve.

The Canadian Defence Investment Agency (DIA) and Swedish aerospace manufacturer Saab AB signed a non-binding term-sheet agreement on September 25, 2026, establishing the framework to negotiate the acquisition of six GlobalEye Airborne Early Warning and Control (AEW&C) aircraft for the Royal Canadian Air Force (RCAF).

Announced in a Saab press release, the preliminary agreement advances Ottawa’s selection of the European platform. The procurement strategy heavily prioritizes domestic industrial benefits, as the GlobalEye system is integrated onto the Canadian-built Bombardier Global 6500 business jet airframe.

Prioritizing domestic aerospace capacity

The selection of the GlobalEye aligns with Canada’s mandate to leverage defense spending for domestic economic growth. By utilizing the Bombardier Global 6500 as the foundational airframe, the program ensures a significant portion of the manufacturing and integration work remains within the country.

According to an official government statement, Secretary of State for Defence Procurement Stephen Fuhr emphasized this dual purpose.

“Canada’s approach to defence procurement must deliver more than military equipment. It must defend Canadians while strengthening our economy, growing Canadian industrial capacity, and opening new opportunities for Canadian companies to compete globally,” Fuhr stated.

Bombardier also issued a statement welcoming the milestone. The Montreal-based manufacturer noted that the intention to bring modification and integration work to skilled Canadian aerospace workers represents a robust defense industrial strategy focused on domestic building.

Navigating cross-border trade pressures

The advancement of the Saab agreement occurs against a complex geopolitical backdrop. Canada evaluated multiple platforms for its AEW&C requirement, including the Boeing E-7 Wedgetail and the L3Harris Aeris X, the latter of which is also based on the Bombardier Global 6500 airframe. The National Post reported that Saab’s selection was heavily influenced by Canada’s desire for technology transfer and enhanced Arctic surveillance capabilities.

Reports from Army Recognition on August 19, 2026, indicated that the United States had leveraged ongoing trade and tariff negotiations to pressure Canada into reversing its selection of the Saab platform in favor of the Boeing E-7 Wedgetail. Despite this reported pressure, the signing of the term sheet signals Canada’s willingness to bypass traditional US defense contractors for this specific capability.

Platform capabilities and procurement timeline

The Saab GlobalEye features an Erieye Extended Range active electronically scanned array (AESA) radar mounted on the Bombardier airframe, providing long-range detection of air, sea, and land targets. The platform has secured a growing operator base, with current and prospective users including the United Arab Emirates, Sweden, France, and the Netherlands.

The procurement process gained public momentum on May 27, 2026, when Canadian Prime Minister Mark Carney announced Saab as the preferred supplier at the CANSEC trade show. The newly established DIA is managing the acquisition, marking a shift in how Canada handles major defense programs.

While the term sheet establishes a defined scope for the program, it remains explicitly non-binding. Saab and the DIA will now conduct detailed negotiations focusing on system configuration, capability development, and program execution to finalize a binding contract and delivery schedule.

“The term-sheet agreement reflects the strong collaboration between Saab and Canada and establishes a clear framework for the next phase of our engagement,” Saab President and CEO Micael Johansson said in the company’s release. Johansson added that the company is well positioned to demonstrate how its AEW&C solution meets Canada’s requirements.

AirPro News analysis

Canada’s decision to formalize negotiations with Saab represents a significant victory for European defense contractors in the North American market. Historically, the RCAF has leaned heavily on US prime contractors for major airborne platforms to ensure seamless interoperability with the North American Aerospace Defense Command (NORAD). By selecting the GlobalEye, the DIA is demonstrating that domestic industrial benefits, specifically the utilization of the Bombardier Global 6500 airframe, can outweigh traditional cross-border procurement habits. Furthermore, proceeding with the term sheet despite reported US tariff pressure suggests Ottawa is increasingly willing to decouple its defense acquisitions from broader bilateral trade disputes.