Beta Technologies speeds up development of military cargo drone, wins FAA grants

By Dan Catchpole

March 9 (Reuters) – Drone startup Beta Technologies is speeding up development of its Alia MV250 military cargo drone by six months, with the first flight now expected this year, Beta chief executive Kyle Clark told Reuters in an interview. 

The accelerated timeline reflects Beta’s increased focus and spending on military programs, he said. 

“We’ve advanced our MV250, and there are big thematic tailwinds right now from the administration, compelling us to invest further in defense,” he said.

Like a helicopter, the electric-powered MV250 can take off and land vertically and will be able to carry up to 2,000 pounds of cargo.

The Vermont-based company, which designs and makes electric aircraft, advanced electric propulsion systems, charging systems and aircraft components, raised $1 billion in its November public offering.

Beta is also ramping up production of its commercial Alia variants: A vertical take-off and landing, or VTOL, version and a conventional take-off and landing, or CTOL, version. It expects to produce 20 aircraft this year and 80 next year, Clark said.

The U.S. Federal Aviation Administration (FAA) picked Beta’s Alia VTOL and its charging systems to participate in seven of eight grant programs to spur integration of e-VTOLs, drones and air taxis into the country’s aviation networks, the agency announced on Monday.

Electric-aircraft makers Joby Aviation, Archer Aviation and Electra were also selected for multiple programs. Share prices for the three publicly traded companies all rose Monday after the grants were announced. Beta shares ended the day up 12%, while Joby and Archer gained 5% and 4%, respectively. 

Beta expects to have the Alia CTOL certified by the FAA by mid-2027, with the VTOL version being certified by mid-2028, Clark said. 

The company has firm orders for 890 aircraft – 70% for the Alia VTOL and 30% for the CTOL.

(Reporting by Dan Catchpole in Seattle; Editing by David Gaffen)