Neros Technologies, a drone maker based in Torrance, California, has signed a conditional loan commitment of up to $450 million with the Department of War’s Office of Strategic Capital (OSC) to expand vertically integrated production of small drones and the components inside them. Neros is adding $165 million of its own equity, which brings the total project size to $615 million, according to the company.

Neros and the Department of War both announced the commitment on November 2, 2026. The department said the financing is intended to support Neros’ domestic manufacturing expansion and reduce reliance on foreign-made components, and that it “directly advances” Executive Order 14307, Unleashing American Drone Dominance. The loan is not yet final: Neros must still satisfy financial, legal, technical, investment, due diligence and other requirements before financial close, the department said.

Advertisement

What the financing will pay for

According to the Department of War, OSC financing alongside additional private capital will support Neros’ planned expansion of domestic manufacturing capacity for dual-use small unmanned aircraft systems (sUAS), ground control systems and critical components such as motors, radios, flight electronics, sensors and batteries.

The department said Neros’ manufacturing facility in Torrance will help onshore the production of complete drone systems and of subcomponents including propulsion motors, flight stacks, radios and thermal sensors. That capacity is meant to serve Neros’ own production and to supply components compliant with the National Defense Authorization Act (NDAA) to other U.S. and allied drone manufacturers.

Neros did not name specific drone platforms in its release. It said the commitment covers vertically integrated manufacturing of several drone platforms and the critical components they use, and that by 2028 it plans to produce one million drones per year across long-range strike, close-quarters combat and interceptor capabilities.

Soren Monroe-Anderson, chief executive and co-founder of Neros, tied the commitment to that production target in the company’s release:

“This capital puts Neros on the path to one million drones per year by 2028, and accelerates America toward drone dominance on a global scale.”

Monroe-Anderson said that since the company’s founding, Neros has believed the United States and its allies would need scaled production of military drones “for credible deterrence against adversarial powers,” and that the commitment supports onshoring the supply chains and components the company expects to rely on during extended conflicts.

What OSC and department officials said

David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg, said Neros “has already demonstrated an ability to design, manufacture, and deliver exceptional small unmanned aircraft systems.” He said the investment “will turbocharge Neros’ ability to manufacture drones and components critical for the production of drone systems.”

James R. Shanahan, Senior Managing Director (Investments) at OSC, said winning the drone industrial-base competition requires the United States to manufacture complete systems at scale and at competitive prices for military and non-military applications. “This starts with bolstering the domestic supply of critical components inside all drone systems,” he said. Emil Michael, Under Secretary of War for Research and Engineering, said: “I applaud OSC for helping to strengthen the domestic drone supply chain.”

Neros and the OSC before this deal

A drone maker founded in 2023

Neros was founded in 2023 and describes itself as the fastest-growing American manufacturer of small unmanned aerial systems, according to a release dated December 11, 2025, in which it launched the Archer Fiber fiber-optic first-person view (FPV) drone with Kela Technologies. That release said Archer Fiber had been cleared under the BlueUAS program after a component-level audit verifying that no critical parts originate from China.

On August 11, 2026, Neros announced a $250 million Series C round at a $2.5 billion post-money valuation, co-led by Sequoia Capital and the American Strategic Technology Fund. The company said that money would support development and production ramps for two programs: Archer AI, an FPV platform with autonomy features including terminal guidance and GPS-denied position hold, and Bandit, a counter-UAS interceptor drone meant to counter Class 2 and 3 threats, including Shahed-style systems. Neros said both would be deployed in combat theaters by the end of 2026.

In the same release, Neros said it holds major contracts with the U.S. Army and Marine Corps, contracts with every component of U.S. Special Operations Command (SOCOM) and contracts with half a dozen allied countries, and that a UK subsidiary handles its partnerships across Europe.

The lender

The OSC’s first loan through a Department of Defense agreement was a $150 million loan to MP Materials to add heavy rare earth separation capabilities at its processing facility in Mountain Pass, California, according to an OSC release. That release said the One Big Beautiful Bill Act, signed into law on July 4, 2025, provides OSC with $500 million of credit subsidy funding, creating up to $100 billion in available loan funds for critical minerals production and related industries and projects.

What comes next

The commitment turns into a loan only after Neros completes the steps the OSC has set before financial close, and neither release gave a timeline for that. In the meantime, Neros’ stated milestones are combat deployment of Archer AI and Bandit by the end of 2026 and output of one million drones per year by 2028.

The French Defence Procurement Agency (DGA) has ordered the vertical take-off and landing (VTOL) variant of the Airbus U010 Aliaca drone, converting the final seven systems of an existing 34-system contract to the new configuration.

Announced by Airbus on October 29, 2026, the shift to a VTOL platform eliminates the need for catapult launches and net recoveries. This capability allows the French Navy to deploy the intelligence, surveillance, and reconnaissance (ISR) drones on smaller secondary vessels and operate them in rougher sea conditions.

Advertisement

Operational expansion and technical specifications

The French Navy first operated the fixed-wing Aliaca on an offshore patrol vessel in 2019. The original system required a catapult for launch and an automated net for recovery. While effective, this infrastructure limited the types of vessels that could host the drone and restricted operations in heavy seas.

According to French Navy officials, the VTOL capability significantly expands deployment options. Pre-flight preparation takes only a few minutes, and the drone can launch in sea conditions that would have previously prevented a safe net recovery.

Maxime Caille, Director of the U010 Aliaca programme at Airbus Helicopters, noted that adding vertical lift to the existing drone required a new wing design and modified fuselage. The VTOL variant retains the same core autopilot and data link components as the fixed-wing model.

The U010 Aliaca VTOL has a maximum take-off weight of 25 kilograms, a wingspan of 3.6 meters, and a length of 2.2 meters. The 100% electric version offers up to three hours of endurance and a 50-kilometer data link range. A hybrid variant extends endurance to six hours and the operational radius to 100 kilometers. Both versions carry a gyro-stabilized electro-optical/infrared (EO/IR) sensor turret with a 30x optical zoom and an Automatic Identification System (AIS) for tracking maritime vessels.

Deployment timeline and fleet integration

Following a trial period conducted between 2024 and 2025, the DGA requested that the final seven systems of the original 34-system order be delivered in the VTOL configuration. Airbus has already delivered 27 fixed-wing systems to the DGA.

Deployment of the VTOL variant will begin on French Navy Metropolitan Support and Assistance Vessels (BSAMs) in late 2026. In 2027, the systems will roll out to Overseas Support and Assistance Vessels (BSAOMs).

The French Navy utilizes the U010 Aliaca, designated as the SMDM in military service, for gathering real-time intelligence during maritime security missions, combating illegal fishing, and monitoring trafficking. Real-time video feeds allow operations rooms to vector interception craft and evaluate target threats.

Airbus UAS consolidation and programme background

The Aliaca drone was originally designed by Survey Copter, a French light tactical drone manufacturer that Airbus acquired in 2011. In October 2025, Airbus Helicopters formally took over the management of Survey Copter’s uncrewed aircraft systems (UAS) programs, including the Aliaca and Capa-X lines, to streamline the company’s aerospace offerings.

The U010 Aliaca is a Category 2 tactical UAS certified to SAIL III standards under the European Union Aviation Safety Agency (EASA) Specific Operations Risk Assessment (SORA) methodology.

In early October 2026, Airbus demonstrated the platform’s interoperability during the MDays event. The company executed a collaborative crewed-uncrewed teaming scenario featuring the U010 Aliaca, the U030 Flexrotor, and an Airbus H130 helicopter operating in real-world conditions.

AirPro News analysis

The DGA’s decision to convert the remainder of its Aliaca order to the VTOL configuration highlights a broader naval shift away from catapult-and-net recovery systems. While fixed-wing drones offer superior endurance and range, the deck space and structural requirements for launch and recovery equipment restrict them to larger surface combatants. By integrating vertical lift capabilities into a fixed-wing airframe, Airbus provides the French Navy with the endurance necessary for extended maritime patrol while enabling operations from secondary support vessels. We expect this hybrid aerodynamic approach to become the baseline requirement for future shipborne tactical UAS procurements.

General Atomics Aeronautical Systems, Inc. (GA-ASI) has opened a new Remote Split Operation (RSO) facility near Grand Forks, North Dakota, relocating MQ-9A Remotely Piloted Aircraft (RPA) flight crews from Africa to the continental United States.

The facility, officially opened during an October 30, 2026, ribbon-cutting ceremony, will support U.S. Africa Command (AFRICOM) missions under a Contractor-Owned, Contractor-Operated (COCO) lease. According to a company press release, the transition to stateside operations is projected to save the U.S. Department of Defense more than $10 million annually while reducing the overseas footprint of contractor personnel.

Advertisement

Transitioning to domestic remote operations

The RSO model allows the physical aircraft to remain deployed in foreign theaters while the flight crews operate the platforms from domestic control stations. This operational shift minimizes the risk to personnel deployed overseas and significantly lowers the logistical costs associated with maintaining forward-deployed crews.

GA-ASI Chief Executive Officer Linden Blue highlighted the dual benefits of the new North Dakota facility during the opening event.

“We’re excited to establish this new facility in North Dakota. Setting up our remote flight operations here in North Dakota will allow us to decrease the number of personnel required overseas, significantly reducing the cost of the COCO to the U.S. government and, more importantly, significantly increase the safety for our personnel. It will also bring approximately 50 well-paying jobs to the Grand Forks community.”

The U.S. military utilizes COCO leases to augment its organic fleet capabilities. Under this arrangement, contractor pilots operate the aircraft on behalf of combatant commands, providing intelligence, surveillance, and reconnaissance data directly to military end-users.

U.S. Senator John Hoeven (R-ND), who worked through the Senate Defense Appropriations Committee to facilitate the project, emphasized the financial and strategic advantages of the relocation.

“General Atomics is moving pilots from Africa to Grand Forks to remotely fly their missions for AFRICOM. Doing so makes perfect sense, and that’s why we worked through the Senate Defense Appropriations Committee to make it happen. This new facility is not only a real cost savings for AFRICOM, which will save more than $10 million per year as pilots operate from Grand Forks rather than overseas, but it also brings a broader intelligence, surveillance and reconnaissance portfolio to our state.”

A decade of expansion at the Grand Forks flight center

The new RSO facility is located at GA-ASI’s Flight Test & Training Center (FTTC), situated within the GrandSky UAS Business Park adjacent to Grand Forks Air Force Base. The FTTC began operations on July 18, 2016, established to provide the manufacturer with dedicated airspace and facilities for flight testing, aircraft maintenance, and aircrew training.

The addition of active AFRICOM mission support builds on the company’s extensive history with uncrewed platforms. GA-ASI’s Predator line of Uncrewed Aircraft Systems (UAS) has been in operation for 30 years, accumulating more than 9 million total flight hours across various military and government operators.

The MQ-9A Reaper, the primary aircraft supported by the new RSO facility, is a medium-altitude, long-endurance (MALE) remotely piloted aircraft designed for persistent surveillance and strike capabilities. By operating the MQ-9A from the North Dakota facility, GA-ASI integrates active combatant command support into a site previously focused primarily on testing and training.

AirPro News analysis

The expansion of Remote Split Operations for COCO leases represents a maturation of how the U.S. Department of Defense procures and manages uncrewed intelligence gathering. By decoupling the aircrew from the physical aircraft deployment, combatant commands like AFRICOM can maintain persistent surveillance coverage over vast geographic areas without the political and logistical friction of expanding overseas troop or contractor footprints. This model effectively treats uncrewed aerial surveillance as a managed service, shifting the burden of personnel security and basing infrastructure back to the manufacturer’s domestic facilities.