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Japan to Build $850M Drone Defense System as China Expands Navy

Japan's $850 million SHIELD system will deploy Shield AI's V-BAT drones to boost maritime surveillance amid escalating Chinese naval incursions, enhancing defense by 2028.

  • On 29/08, Shield AI announced its V-BAT unmanned aircraft system was selected by the Japan Maritime Self-Defense Force as the first maritime ISR platform, with multiple units to equip JMSDF surface vessels and a planned multi-year order stream.
  • On the morning of October 16, 2025, four China Coast Guard vessels entered waters around the Senkaku Islands, remaining about one and a half to two hours amid deployment of 5,000-ton class CCG ships armed with 76 mm guns.
  • The V-BAT's unique single-engine ducted-fan design enables confined shipborne launches and recoveries, with proven performance in GPS- and communications-denied environments and advanced Hivemind AI pilot autonomy.
  • The defence budget request would roughly treble spending on unmanned vehicles to 313 billion yen, with drones integrated into the SHIELD coastal defence system planned for completion by March 2028, now vetted by the Finance Ministry.
  • Japan's budget push signals a broader strategic shift as it moves away from strict pacifism, aligning with U.S.-Japan alliance needs to deter threats near the Senkaku Islands, hosting 54,000 US military personnel.
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読売新聞オンライン broke the news in Japan on Monday, August 18, 2025.
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