Terra Drone Corporation has signed a Memorandum of Understanding (MoU) with Mitsui & Co., Ltd. to explore the establishment of a joint venture company in the United States. Under this MoU, the two companies will begin discussions to explore the development of joint business in the fields of drones and advanced air mobility (AAM) in the Americas.
“Expectations for next-generation air mobility using drones and AAM technologies have been rapidly increasing in the Americas, driving technological implementation in various fields such as infrastructure, logistics, inspection, and UTM,” Terra Drone said on May 20. “As the social implementation of these technologies progresses, low-altitude airspace is expected to become more congested, highlighting the need to develop UTM infrastructure to realize safe and efficient flight operations.”
Terra Drone addresses these challenges by offering integrated drone solutions that combine hardware, software, and services, as well as by providing UTM systems to solve industrial issues and enhance safety in the low-altitude economy. Meanwhile, Mitsui & Co., a global trading and investment company with a diverse global portfolio, has also been paying close attention to the social implementation of air mobility since around 2021. Both Terra Drone and Mitsui & Co. have previously collaborated on initiatives with the goal of social implementation of next-generation air mobility, having been selected for government-subsidized projects in Osaka Prefecture, Osaka City and Hyogo Prefecture, and jointly conducting UTM system demonstrations.
The new MoU will see Terra Drone explore the development of next-generation air mobility businesses in the United States, with a view to future collaboration with Mitsui & Co. The planned joint venture, based on the MoU, is expected to be headquartered in the US, with Terra Drone making a majority investment. The business scope of the new joint venture will not include Terra Drone’s existing US operations.
The envisioned business activities of the joint venture include investment in drone and AAM-related companies in the Americas and the provision of related services, as well as the manufacturing, sales, and distribution of associated products.
“Based on the MoU, Terra Drone will proceed with exploring the establishment of the US-based joint venture through discussions with Mitsui & Co.,” the company said, adding that the impact of this MoU on Terra Drone’s consolidated financial results for FY25 is expected to be minimal.
For more information
