Shield AI, a California-based defense technology firm, has begun construction on a new unmanned aerial systems (UAS) production facility in Hyderabad, India, as part of a $90 million joint venture with JSW Group.
The move aims to bring full-scale local manufacturing of the V-BAT drone to the Indian defense sector under a long-term technology transfer agreement.
“This week, Shield AI and JSW officially broke ground on JSW’s state-of-the-art unmanned aerial systems (UAS) facility at EMC Maheshwaram, Hyderabad,” the company said in a public statement. “The ceremony was attended by Indian industry and defense leaders.”
According to Shield AI, the initiative will enable “world-class manufacturing, assembly, and testing of V-BATs, strengthening India’s defense sovereignty one V-BAT at a time.” The V-BAT drone, a vertical take-off and landing (VTOL) Group 3 UAS, is designed for intelligence, surveillance, and reconnaissance (ISR) missions and has already been deployed by U.S. and allied forces.
JSW Defence confirmed the scale of the investment in its own release. “JSW Defence on Tuesday said it has kick-started a USD 90-million project with the construction of a military drone facility in Hyderabad in partnership with US-based Shield AI.”
Under the long-term licensing arrangement, JSW will not only manufacture the V-BAT system locally but will also establish a compliance program, training infrastructure, and integrated logistics to support drone production and support. The investment includes a global compliance program, technology licensing frameworks, and skilled manpower development.
As part of the agreement, JSW Group will manufacture V-BATs domestically, with technical support from Shield AI, under a formal Transfer of Technology (ToT) mechanism. The Indian facility is expected to reduce delivery timelines and increase availability of the platform to regional customers.
The company emphasized the strategic implications of the venture, noting that the facility will “drive local supply-chain development” and reinforce domestic defense production goals in alignment with India’s “Make in India” policy for the defense sector.
“We look forward to our continued partnership with JSW and more work in India to come!” Shield AI said.
While no timeline was released for the delivery of the first Indian-built V-BAT units, the company noted that the facility is being constructed at EMC Maheshwaram, a designated aerospace and defense manufacturing zone near Hyderabad.
The company’s V-BAT has gained traction due to its compact footprint, ease of deployment, and extended endurance. The system is already in operational use with U.S. forces and allied partners and has been evaluated in maritime, urban, and expeditionary settings. V-BAT also gained wider market attention following successful operational testing during the full-scale war in Ukraine, where its performance under combat conditions attracted interest from multiple aerospace and defense customers.