Could Japan be the next drone giant? Prime Minister looks to push domestic production to reduce reliance on China

Japan is accelerating its drone manufacturing ambitions to lessen its dependence on Chinese suppliers, amid growing strategic concerns over Beijing's dominance in the global industrial drone market. Prime Minister Sanae Takaichi spearheads this push, as the country's defense budget for unmanned systems surged to 277 billion yen ($1.72 billion) in the past fiscal year, compared to 111 billion yen ($705 million) in 2025.

The ruling Liberal Democratic Party has set a target to produce around 80,000 drones per year by 2030, although funding specifics remain undisclosed. Defense startups Eams Robotics and Terra Drone are pivoting from civilian applications to defense-oriented drone production. Eams Robotics, formerly an aerial photography firm, recently completed a fully autonomous flight across an active railway line without a ground observer present.

Terra Drone, the more defense-focused of the two, is set to mass-produce Japan-made batteries for defense and industrial customers, addressing a domestic shortage critical for drone manufacturing. Japan's acquisition, technology, and logistics agency is scheduled to demonstrate interceptor drones near radar sites, aiming to counter long-range suicide drones capable of traveling 1,100 miles.

Meanwhile, reports suggest potential delays in Tomahawk missile deliveries to Japan, after a 38-day U.S. campaign against Iran strained U.S. stockpiles. Japan's military buildup, including missile networks and unmanned ground systems, is scheduled to conclude in 2027. Terra Drone CEO Toru Tokushige expressed cautious optimism about the defense ministry's interest, noting lessons learned from Ukraine's battlefield experiences, but cautioned that translating this optimism into real-world capability against long-range drone threats remains uncertain.