Shield AI and GEK TERNA team up to build X-BAT industrial base in Greece

What the agreement covers

According to Shield AI, the MoU sets out a split of responsibilities. Shield AI would lead the X-BAT program and supply the aircraft's autonomy software and mission systems. GEK TERNA would act as its strategic partner in Greece, managing and enhancing a Greek supplier base that includes small and medium-sized enterprises expected to take part in the program. It would also run a local X-BAT program office.

Local industrial participation is expected to include:

• parts manufacturing and assembly
• ground equipment
• operating bases and launch sites
• training centers
• maintenance and repair
• research with Greek universities

The companies are now negotiating the definitive agreements that will set roles, workshare and facilities.

The X-BAT and why Greece

Shield AI describes X-BAT as a long-range, survivable, AI-piloted strike fighter that takes off and lands vertically, so it can operate from ships, islands or remote sites without a runway. The company argues this suits Greece, a NATO member and long-standing US ally that defends hundreds of islands and a long coastline across the Aegean and Eastern Mediterranean. In the release's words, runways are among the first targets in a conflict, and island airstrips are few and exposed.

According to the company, X-BAT will carry weapons up to the 2,000-pound class in internal bays comparable in size to the F-35's. It has an objective combat radius of 1,000 nautical miles and will support power-intensive electronic warfare and intelligence, surveillance and reconnaissance payloads. It is powered by GE Aerospace's F110 engine and will fly on Shield AI's Hivemind autonomy software, which the company says enables operations without GPS or communications. Flight testing will begin later this year, according to Shield AI.

Statements from both companies

James Lythgoe, Regional Director, Eastern & Southeast Europe at Shield AI, said Greece already flies the company's aircraft over the Aegean and Greek engineers are already building on its software, so "X-BAT is the next step in that relationship." He said GEK TERNA builds and runs the motorways, airports, power systems and critical digital infrastructure Greece depends on, and that Shield AI wants that capability applied to launch sites, training centers, MROs and sustainment centres.

George Kouladis, Investments Monitoring Head of GEK TERNA, said the company has developed, built and operated critical infrastructure for more than fifty years. He said the aim is for Greek companies to assemble, integrate and support X-BAT in the country, with Greece becoming the place where regional operators train and maintain it. He cited long-term local highly skilled engineering jobs, a strong Greek supplier base and an aircraft the Hellenic Armed Forces can sustain at home.

A regional hub and Shield AI's growing Greek footprint

The companies will look at Greece as a regional hub for X-BAT training, logistics and maintenance, serving Cyprus, the Balkans and Southeastern Europe.

Shield AI says its work in Greece has grown this year. In June, the Hellenic Army signed an agreement to expand its V-BAT fleet for maritime surveillance across the Aegean, and Shield AI announced a new office in Athens. In July, V-BAT flew the live demonstration at the opening of Greece's Joint UAS Tactics Training Centre in Tripoli.

GEK TERNA is listed on the Athens Stock Exchange and, according to its profile in the release, employs approximately 9,000 people. For now the agreement is an intention to pursue the work, and its scope depends on the definitive agreements still under negotiation.