The V-BAT (also designated MQ-35A) is a vertical take-off and landing (VTOL) reconnaissance unmanned aerial system (UAS) developed by Shield AI. As a Group 3 unmanned aircraft, the V-BAT is a mid-sized UAS designed for versatility and operational efficiency. One of its key advantages is its ability to utilize a small landing zone – just 12 feet by 12 feet – making the V-BAT particularly well-suited for naval deployment. This capability allows maritime forces to conduct intelligence, surveillance, and reconnaissance (ISR) missions, without the need for large, dedicated infrastructure.
Origins and Timeline
To fulfill new technological requirements, the U.S. Navy selected the V-BAT for prototyping and development in April 2021. The V-BAT’s minimal logistical support requirements and versatility meet the Navy’s requirements for a portable, self-sufficient, and modular UAS. In October 2021, Shield AI initiated the Multi-Mission Tactical UAS Increment 2 (Mi2) prototype effort in collaboration with the Naval Air Warfare Center Aircraft Division (NAWCAD).
Shield AI successfully deployed the V-BAT on multiple missions with the 11th Marine Expeditionary Unit (MEU) aboard USS Portland . During one such mission, the V-BAT crew demonstrated the aircraft’s Automatic Identification System (AIS) capability by linking sensors to the target within three minutes of task reception. Further operational testing in Ukraine highlighted the V-BAT’s resilience to electronic warfare, proving its capacity to operate effectively in contested environments without relying on GPS or external communication.
Most recently, Shield AI has introduced V-BAT Teams, which enables drone swarming capabilities. Powered by the AI pilot Hivemind, Teams allows a single operator to command intelligent teams of aircraft covering up to 30,000 square miles. Shield AI’s emphasis on the development of this project indicates that they may be positioning the V-BAT for integration into the Pentagon’s Replicator program, which aims to rapidly deploy large numbers of autonomous systems.
Budget and Partners
While there is no publicly available list of suppliers, the V-BAT’s modular approach allows for partnerships with various munition and sensor manufacturers. The V-BAT utilizes the Modular Payload Standard initiated by USSOCOM, enabling third-party manufacturers, the U.S. Department of Defense (DoD), and other international partners to develop and integrate payloads easily. The system features three open payload slots, allowing for flexible mission configurations. For example, one of the tested payloads was the Northrop Grumman Hatchet, a long-term partner of Shield AI. Additionally, the V-BAT is compatible with sensor packages from companies such as Trillium Engineering (HD-80) and IMSAR (NSP-3).
Similarly, the V-BAT project budget remains undisclosed. However, Shield AI has secured substantial funding through government contracts and private investments. In July 2024, the U.S. Coast Guard awarded Shield AI a $198 million contract for services utilizing the V-BAT, marking one of the largest contractor-owned, contractor-operated UAS developments for maritime ISR. Shield AI has raised over $500 million in funding, with key investors including Palantir and Lockheed Martin. The per-unit cost of a V-BAT falls in the mid-six figure range.
Shield AI has also established significant partnerships. Domestically, the company closely collaborates with Palantir Technologies, which provides software solutions to enhance the V-BAT Hivemind for autonomous operations. This collaboration, known as Warp Speed, aims to optimize AI-driven drone coordination. Internationally, Shield AI has partnered with JSW Group to manufacture V-BATs in India. The November 2024 agreement includes a $90 million investment for technology transfer, a manufacturing facility, and compliance programs to support local and international production demands. This effort will enable large-scale production of V-BATs, making India Shield AI’s newest global production hub.
Export Market and Outlook
The V-BATs relatively low cost makes it attractive for high-risk operations and large-scale deployments. It is particularly well-suited for drone-swarming tactics, which the Pentagon prioritizes as a part of its broader strategy to counter China’s growing military capabilities. With plans to deploy thousands of drones within the next two years, cost-effective UAS platforms like the V-BAT are likely to see increased export demand.
Additionally, the high research and development costs associated with indigenous UAS programs make importing affordable, combat-proven drones an attractive option for many countries. Several nations have already placed orders for the V-BAT. In January 2022, Brazilian defense firm VSK Tactical became one of the first foreign entities to acquire a shipment of V-BATs. In January 2025, Shield AI announced that the European Union’s (EU) border security agency, Frontex was employing V-BATs for border security. More recently, Japan expects to finalize a $25 million contract with Shield AI for V-BAT units to bolster reconnaissance capabilities in the East China Sea.
Shield AI’s partnership with JSW to open an international production hub for global exports indicates that the company anticipates significantly increased demand. Operational testing in Ukraine has further strengthened the V-BAT’s reputation. Its demonstrated effectiveness against Russian electronic warfare is likely to attract buyers from NATO countries near Russia, where concerns about potential conflict remain high.
Looking ahead, the global demand for UAS is expected to grow. Military forces worldwide are increasingly prioritizing unmanned platforms to reduce human casualties and enhance combat effectiveness. While North America, Europe, and Israel currently dominate the military UAS market, more countries are beginning to develop their own drone programs. This could reduce the U.S.’s market share in UAS production over time. However, according to Forecast International projections, the market for military UAS is projected to be worth an estimated $54 billion over the next decade, ensuring continued opportunities for growth. Despite rising costs associated with integrating new capabilities, the increasing demand for autonomous systems will likely sustain global production and drive further innovation.
Anna Miskelley has cultivated a deep interest in global security, emerging technologies, and military systems throughout her academic and professional career. She is currently a Defense Industry Analyst with Forecast International.
Before joining Forecast International, Anna was a research fellow at the Center for Security, Innovation, and New Technology, where she researched the impact of artificial intelligence on U.S. nuclear command and control systems. Proficient in Mandarin Chinese, Anna has published research on topics including strategic stability, internal Chinese politics, and artificial intelligence.
