Japanese Prime Minister Sanae Takaichi set the tone for the debate over Japan’s rearmament with her remark that a Chinese move against Taiwan could threaten Japan’s survival and warrant a military response.
But the first victims of its military buildup may be in Ukraine, where Japanese enterprise Terra Drone has teamed up with the Ukrainian drone builder Amazing drones.
This was underlined on May 29, when Japan’s Ministry of Defense (MOD) announced this Distribution of the Japan Self-Defense Forces personnel at the headquarters NATO Security Assistance and Training for Ukraine (NSATU).
Here are the details announced by Japan’s Ministry of Defense:
- The Ministry of Defense (MOD) and the Japan Self-Defense Forces (JSDF) have decided to deploy four JSDF personnel to the NATO Security Assistance and Training Headquarters for Ukraine (NSATU), located in Germany.
- This shipment follows the offer made in April last year by former Minister Nakatani to NATO Secretary General Rutte, expressing Japan’s intention to continue with the agreements for participation in NSATU. Coordination with the NATO side has already been finalized, leading to this announcement.
- This deployment will contribute to strengthening Japan’s defense capabilities by taking advantage of lessons learned in Ukraine, including the “new way of war”. It will also deepen Japan-NATO cooperation in the context of security inseparability between the Euro-Atlantic and Indo-Pacific regions.
- The MOD/JSDF will continue to advance security and defense cooperation between Japan and NATO.
In March 2026, Terra Drone announced “full scale entry” in the defense equipment market and a strategic investment at Amazing Drones, which develops and manufactures interceptor drones in Ukraine.
In April, Terra Drone announced operational deployment of the short-range interceptor drone “Terra A1”, which was developed in partnership with Amazing Drones. The first successful one WIRETAPPING of a “long-range unmanned aerial threat” was announced at the end of the month.
Also in April, Terra Drone announced a second strategic investment, this one in WinnyLaba Ukrainian defense technology company that manufactures fixed-wing surveillance drones and integrates related software. This fixed-wing capability was used over longer distances Terra A2 drone deployed in May.
The Terra A1 is a highly mobile interceptor designed for rapid deployment, instant launch and high-speed short-range interception. It accelerates to 200 kilometers per hour within 10 seconds of takeoff, flies at a top speed of 302 km/h and has an operational range of up to 32 km.
The Terra A2 has a top speed of 310 km/h, a maximum flight time of 40 minutes and an operational range of up to 75 km. To see more specs and watch videos of these drones being launched, click here.
Distributed production in Ukraine
At the end of March, UNITED24 Mediaan initiative of the Ukrainian government, reported that “Japan plans to manufacture interceptor drones in Ukraine, but not in the way you think.”
Speaking at a joint press conference with Amazing Drones in Kiev on March 31, Terra Drone CEO Toru Tokushige said: “If you build a large factory in the normal way, it becomes a target. Ukrainian engineers already have the know-how – how to decentralize production and operate under constant threat. We are learning from this.”
Tokushige’s point was reinforced by Russia’s Defense Ministry and Dmitry Medvedev, the deputy chairman of Russia’s Security Council, in mid-April, after the German government announced a €4 billion aid package to support Ukraine’s air defenses and drones, and when Ukrainian President Volodymyr Zelensky and Italian Prime Minister Giorgia Meloni announced that they were exploring the joint production of drones.
Russia’s Defense Ministry responded that the joint production of drones would be a “step towards escalation” and published a list of European drone manufacturers and their addresses, writing on Telegram: “We consider this decision a deliberate step leading to a sharp escalation of the military and political situation across the European continent and the creeping transformation of these countries into a strategic backdrop for Ukraine.”
The list includes companies in the United Kingdom, Germany, the Netherlands, Denmark, Latvia, Lithuania, Poland, the Czech Republic, Spain, Italy, Turkey and Israel. In case anyone missed the point, Russia’s Ministry of Defense added that, “The European public should not only clearly understand the root causes of threats to their security, but also know the addresses and locations of the ‘Ukrainian’ and ‘joint’ companies that manufacture UAVs.”
The former Russian president Medvedev wrote in X that: “The statement of the Russian Ministry of Defense should be taken literally: the list of European facilities that produce drones and other equipment is a list of possible targets for the Russian armed forces. When the attacks become a reality, it depends on what comes next. Sleep well, European partners!”
Despite this, as with its Ukrainian partner, Terra Drone favors distributed, small-scale production, which would also reduce the risk of casualties among the Japanese engineers and production specialists Tokushige plans to send to Ukraine.
But, “For now,” He continued, “the most important thing is the real combat deployment, that’s what we’re working on.”
According to Amazing Drones CEO Maksym Klymenko, “The main challenge is the escalation to a full-scale war—constant threats, attacks and security risks. There is also a shortage of personnel, but we believe these challenges can be overcome.“
Return to Kiev on April 28 to talk about increasing production Terra A1 and Terra A2 interceptor dronesTokushige said:
“Ukraine has its advantages: speed of development and low cost. But there are also challenges – lack of experience in mass production and operation in global markets, as well as lack of key technologies. Many processes are still manual, which complicates scaling, especially beyond the country. That is why the development of autonomous systems is extremely important, and this is exactly what is expected of us.”
On April 28, Terra Drone also announced that a Terra AI drone co-developed with Amazing Drones had “demonstrated his ability to respond against long-range unmanned aerial threats under actual operational conditions… a significant milestone … (that) represents an important step in proving the Terra A1’s effectiveness in real-world operational environments.“
Or, as Tokushige said, “One of our A1 drones has already successfully captured a ‘Shahed’. This is critical because in the military, what matters most is not certifications, but proven combat performance. Without that, it’s impossible to sell.”
Shahed drones are unmanned combat aerial vehicles designed by Iran Shahed Aviation Industries. They are produced in both Iran and Russia Russian version improving. Taking down a Shahed, Tokushige got his selling point.
Terra Drone has developed a layered defense concept that combines interceptor drones with complementary capabilities. According to Tokushige, “It is impossible to protect yourself using only one type of system. You need multiple layers – short, medium and long, with different speeds. Our A1 is one layer, and the new A2 is the middle layer. Another type is also in development.”
Terra Drone also plans to introduce jet-powered drones capable of flying up to 440 km/h with a range of up to 140 km.
“In Ukraine,” said Tokushige, “such solutions are already being developed – low-cost drones or missiles. The pace of development here is not 10-20 years as in traditional defense industries, but literally six months. That’s why startups are extremely important.”
Terra Drone also aims to build AI-enabled drone systems that detect and engage targets autonomously, reducing reliance on humans in dangerous or depopulated areas.
Cooperation with Turkey
It was May 6 Turkey-Japan Defense Industry Cooperation Day IN SAHA International Defense and Aerospace Exhibition in Istanbul. The Secretariat of Defense Industries of Turkey (SSB) and that of Japan Acquisition, Technology and Logistics Agency (ATLA) took “important steps… towards development strategic cooperation between the two countries in the defense industry and high-tech fields,” according to SSB President Haluk Gorgun. Japanese Ambassador Masami Tamura echoed that sentiment.
More than 10 Japanese companies participated in the event, including Terra Drone. Japanese military equipment manufacturers have been eyeing Turkish drone technology for several years and are said to be in talks with the military contractor. Baykarthe manufacturer of Flag TB2 drone used by Azerbaijan, Ukraine and Qatar, and also with Turkish aerospace industries.
Speaking from Istanbul, Tokushige told Nikkei Asia that he is looking for partners to integrate interceptor drones into larger systems capable of detection, identification, tracking and command and control. With that in mind, he is talking to Turkey’s main defense contractor Aselsan.
Japan seeks to replicate South Korea’s success in selling defense equipment to Turkey, while Turkey aims to diversify and expand its access to defense technology and its own defense equipment exports.
Tokushige also hopes to sell them surveillance drones Persian Gulf states targeted by Iran, or may have already done so, if MilitaryNewsUA@front_ukrainian in X can be trusted. The price advantage is huge: about $2,500 for a Terra A1 and $3,000 for a Terra A2 versus $4 million for a Patriot missile. A Shahed drone is said to cost around $35,000.
In any case, Terra Drone is targeting international markets beyond Ukraine, hoping to build economies of scale and its reputation. “Specific financial figures are not yet available,” Tokushige said, “but the potential is hundreds of millions of dollars…”
In April 2025, the Terra Drone was chosen to take on the Japanese government subsidies to promote commercial drone sales in the United Arab Emirates and Saudi Arabia.
Japan’s leading drone manufacturer
However, the ultimate goal is the mass production of advanced military drones in Japan. And it seems likely to be achieved sooner rather than later.
On May 8, Terra Drone announced that it had secured an order through a competitive public tender conducted by Japan’s Acquisition, Technology and Logistics Agency (ATLA) and had entered into a production contract for 300 units of domestically manufactured “Modular UAV (General Purpose), Training Model”.
According to Terra Drone, this “represents a significant order achievement for the Company’s defense business… We believe this order reflects recognition of Terra Drone’s capabilities in developing, supplying and fielding indigenously produced drone systems amidst these broader market and policy trends.”
Founded in 2016, Terra Drone is headquartered in Tokyo. Overseas, in addition to partnerships in Ukraine, it is active in Europe, the US and Canada, Latin America, the Middle East, India, Southeast Asia and Australia.
Terra Drone’s initial target markets were agriculture, industrial facility inspection, surveying for construction and engineering projects, and drone traffic management.
Now, with its defense business key to Japan’s military buildup and its surveillance drones in demand overseas, the company’s sales growth should accelerate and its need for subsidies fall until it becomes a profitable enterprise by the end of the decade.
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