Palladyne AI Corp. a U.S.-based defense and industrial technology company, and Israel Aerospace Industries (IAI), a world-class aerospace and defense leader announced the formation of a strategic partnership under which Palladyne AI will manufacture, integrate and market IAI’s HARPY, HAROP and Mini HARPY loitering munition systems to the U.S. Department of War.
The partnership provides Palladyne AI with exclusive U.S. production and marketing rights for loitering munition systems, designed to suppress and destroy enemy air defenses and provide long-range strike capabilities across operational and tactical environments.
IAI has been pioneering the global loitering munition market for more than 40 years, with systems deployed operationally in many militaries worldwide. Under the partnership, Palladyne AI will adapt the systems to U.S. operational requirements and domestically manufacture components and subsystems, while IAI will provide engineering support and key subsystems. The partnership comes as the Department of War is increasing its investments in loitering munitions to expand its military capabilities for the modern battlefield.
Boaz Levy, IAI’s Chairman of the Board: “The U.S. is a strategic market for IAI, and this partnership represents a significant step in expanding our long-term presence and industrial cooperation in the U.S. defense sector. By combining IAI’s decades of operational expertise and combat-proven loitering munition technologies with Palladyne AI’s U.S.-based manufacturing capabilities, we are positioning these systems to meet evolving operational requirements and support the current and future needs of the U.S.”
Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented: “The U.S. defense industrial base needs battle-proven loitering munitions capabilities it can field now. IAI’s systems have been validated in real-world combat environments for decades. What differentiates this partnership is that by combining IAI’s systems with Palladyne AI’s U.S. engineering and manufacturing capabilities, we can make those systems’ capabilities available to the U.S. Department of War much faster than through a clean-sheet development program. We built that stack in 2025. This partnership is the first major proof of what it can do.”
Guy Barlev, Executive VP and GM of the Space Missiles and Systems, IAI: “This new strategic partnership will bring our combat-proven long-range loitering munitions to the U.S. market. We selected Palladyne AI for its combination of advanced autonomy, engineering expertise and certified U.S. manufacturing capabilities. Palladyne AI’s leadership has built and scaled large, complex businesses before. Their team moves with the kind of urgency the current threat environment demands.
Admiral Eric T. Olson (Ret.), Palladyne AI board member, concluded, “We built Palladyne AI to be the kind of partner the Department of War actually needs right now, not a startup with an interesting product and no ability to scale, and not a legacy prime moving at legacy prime speed. We can take proven systems, adapt them for U.S. requirements, and build them in America. The IAI partnership is exactly the kind of opportunity that Palladyne’s infrastructure was designed to capture.
