Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, is pleased to announce that it 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 AAM in the Americas, leveraging their respective strengths.
Background and Purpose
In recent years, 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. 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 has been addressing 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. 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 aimed at the social implementation of next-generation air mobility, having been selected for government-subsidized projects of Osaka Prefecture, Osaka City and Hyogo Prefecture, and jointly conducting UTM system demonstrations.
Through these initiatives, Terra Drone has strengthened its partnership with Mitsui & Co.. Based on the MoU, the company will begin exploring the development of next-generation air mobility businesses in the US, with a view to future collaboration with Mitsui & Co.
Overview of the Planned Joint Venture
The planned joint venture, based on the MoU, is expected to be headquartered in the US, with Terra Drone making a majority investment. It is noted that 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
- Provision of related services, as well as the manufacturing, sales, and distribution of associated products
Future Prospects
Based on the MoU, Terra Drone will proceed with exploring the establishment of the US-based joint venture through discussions with Mitsui & Co.. The impact of this MoU on Terra Drone’s consolidated financial results for FY25 is expected to be minimal. However, should any matters requiring disclosure arise in the future, an announcement will be made without delay.
