Shield AI and Greek infrastructure group GEK TERNA plan to develop a local industrial and maintenance hub for the X-BAT.
The companies signed a memorandum of understanding covering parts production, aircraft integration, training, maintenance, and long-term support. The final work split, facilities, and other terms remain under negotiation.
The X-BAT is designed to take off and land vertically from ships, islands, and remote sites. Shield AI said the aircraft will carry weapons in internal bays and support electronic warfare and intelligence, surveillance, and reconnaissance missions.
Its Hivemind software will serve as the AI pilot, enabling operations in GPS-denied and communications-constrained environments.
GEK TERNA would coordinate Greek suppliers and manage a local program office. The companies also want Greece to become a regional center for X-BAT training, logistics, and maintenance, serving Cyprus, the Balkans, and southeastern Europe.
The proposed partnership builds on Shield AI’s existing work in Greece. In June, the Hellenic Army agreed to expand its fleet of V-BAT uncrewed aircraft for maritime surveillance across the Aegean Sea. The company also opened an office in Athens.
Greece Expands Drone Development
The X-BAT agreement comes as Greece seeks to develop more defense technology at home, including drones and AI-enabled systems.
In March 2026, the Hellenic Center for Defence Innovation signed four contracts for drone and uncrewed combat aircraft development. One involved the military’s research and innovation center, while three went to private Greek companies. The projects followed field testing with the armed forces during the PARMENION joint exercise.
In June, Defence Minister Nikos Dendias laid the foundation stone for a new drone manufacturing plant in Malakasa, Attica. The facility forms part of the country’s wider effort to strengthen domestic defense production.