AeroVironment, Inc. announced the formation of a joint venture to develop solar-powered high-altitude long-endurance, or HALE, UAS for commercial operations. This category of UAS is also referred to as high-altitude pseudo-satellites, or HAPS. The joint venture will fund the development program up to a net maximum value of $65,011,481.

The joint venture, HAPSMobile, Inc., is a Japanese corporation that is 95% funded and owned by Japan-based telecommunications operator SoftBank Corp. and 5% funded and owned by AeroVironment, Inc. AeroVironment is committed to contribute $5 million in capital for its 5% ownership of the joint venture, and has an option to increase its ownership stake in HAPSMobile up to 19% at the same cost basis as its initial 5% purchase. SoftBank Corp.

and AeroVironment, Inc. have agreed to license certain background intellectual properties to HAPSMobile, which will own the newly developed UAS intellectual property and possess exclusive rights for commercial applications globally, and non-commercial applications in Japan. AeroVironment will possess exclusive rights to the resulting intellectual property for certain non-commercial applications, except in Japan. AeroVironment will also possess exclusive rights to design and manufacture all such aircraft in the future for HAPSMobile, subject to the terms of the Joint Venture Agreement.