As part of its strategic agreement with GEK TERNA, American defense company Shield AI has mapped out its next steps toward establishing a production and support base for the unmanned combat aircraft X-BAT in Greece. Speaking to powergame.gr and journalist Natassa Frangoulis, Shield AI stated that “we are in negotiations on definitive agreements that will define each company’s responsibilities and the scope of work in Greece,” signaling the key milestones ahead.
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The agreement between Shield AI and GEK TERNA confirmed reporting by powergame.gr from the previous month regarding the American company’s discussions with Greek businesses and the possibility of establishing a production base in the country. As early as September, James Lythgoe, Shield AI’s Regional Director for Eastern and Southeastern Europe, had confirmed to powergame.gr that Greek industry had expressed interest in joining the X-BAT production and support chain.
GEK TERNA & Shield AI: No clear timeline yet
Going forward, the cooperation between the two parties is moving from exploring industrial participation possibilities toward identifying specific activities on Greek soil. Nevertheless, as Shield AI executives clarify to powergame.gr, there is as yet no announceble timeline — neither for the completion of the definitive agreements nor for the commencement of industrial activities.
The next steps
The memorandum of understanding between Shield AI and GEK TERNA marks the starting point of a plan that still needs to take on specific operational and industrial content. Shield AI clearly outlines the priorities for the next phase. “The next steps are to define the individual work packages, identify and evaluate potential Greek suppliers, and determine the required facilities and support capabilities,” company sources told powergame.gr. “These details will form the basis for the definitive agreements,” they added, describing the process that must precede any production activity.
What is being planned
At the heart of the plan is the development of a Greek industrial ecosystem, with businesses participating in component manufacturing, assembly, systems integration, maintenance, and technical support for the X-BAT. Within this framework, GEK TERNA takes on a pivotal role in developing and coordinating the domestic supply chain, including the participation of small and medium-sized enterprises. Shield AI retains responsibility for the aircraft itself, the Hivemind autonomy software, and the mission systems.
Greece defends hundreds of islands. Few of them have runways. X-BAT doesn’t need one. We signed a strategic agreement with GEK TERNA, Greece’s largest investor in critical infrastructure, to pursue parts production, aircraft integration and long-term sustainment for X-BAT in Greece. Greek companies and engineers would build and run the launch sites, training centers and repair shops that support X-BAT operations. Built and sustained in Greece, X-BAT could give the Hellenic Armed Forces a fighter they maintain at home and make Greece the place where regional partners train and maintain it. Full release: https://t.co/gMVYh4nTgF Autonomy for the world. The greatest victory requires no war.
— Shield AI (@shieldaitech) October 8, 2026
What the American company is making clear
Despite the agreement, the transition to production is neither immediate nor guaranteed. Shield AI makes clear that discussions are still in an early stage and that the specific scope of work and implementation timeline have not yet been finalized. “We have no timeline to announce for these agreements or for the start of industrial activities,” the company explicitly states.
At the same time, Shield AI explains that “implementation will depend on the agreed scope of work, customer requirements, supplier evaluation and approval, and necessary regulatory clearances.” These are parameters that will determine both the extent of Greek participation and the timeline for activating the partnership. The selection of suppliers and the identification of required facilities are therefore essential steps before any specific production commitments can be made.
The possibility of X-BAT procurement by the Hellenic Armed Forces
A significant dimension of the planning is the potential procurement of the X-BAT by the Hellenic Armed Forces. According to sources familiar with the agreement, the goal is to have the necessary industrial groundwork in place so that, should a decision be made to acquire the aircraft, production in Greece could be activated without significant delays. Shield AI’s existing cooperation with the Hellenic Armed Forces through the V-BAT — an unmanned surveillance and reconnaissance aircraft — provides a collaborative foundation, though it does not predetermine any decision regarding the X-BAT.
A foundation for cooperation is taking shape
The X-BAT is an under-development long-range unmanned combat aircraft capable of vertical takeoff and landing without a conventional runway. Its first flight tests are scheduled for 2026. For Greece, the stakes extend well beyond the potential production of components or the assembly of a defense system. The partnership creates the prospect of developing a regional hub for X-BAT maintenance, training, and technical support, with a potential reach spanning Cyprus, the Balkans, and Southeastern Europe. Whether this prospect translates into concrete investments and production activities will depend on the outcome of negotiations, the division of labor, and the decisions that follow for the program, a source with knowledge of the developments told powergame.gr.
