Hanwha Aerospace has formalized a partnership with General Atomics Aeronautical Systems to develop the Gray Eagle Short Takeoff and Landing unmanned aircraft, signing the agreement Oct. 14 at the Association of the United States Army conference in Washington.
The South Korean defense contractor plans to allocate 750 billion won ($525 million) to its drone operations, drawing 300 billion won ($210 million) from a recent capital increase, according to Janes. The companies will split development costs on a 70-30 basis, with Hanwha establishing production facilities for final assembly in South Korea while General Atomics maintains system integration responsibilities.
The aircraft, derived from General Atomics’ MQ-1C Gray Eagle platform, can operate from runways as short as 100 meters and from unprepared surfaces including dirt roads and beaches. Hanwha will manufacture engines, landing gear, avionics and mission equipment for the drone.
The partnership represents Hanwha’s latest effort to diversify beyond its core artillery business, where the K9 howitzer has generated substantial export revenue. The company recorded 11.25 trillion won ($7.74 billion) in revenue for 2024, marking a 43% increase from the prior year.
First flight is scheduled for 2027, with initial customer deliveries targeted for 2028. Both the U.S. Department of Defense and South Korea’s Ministry of Defense are identified as potential buyers, though no orders have been announced.
General Atomics previously demonstrated the drone’s capabilities by operating it from a South Korean naval vessel last November.
