Nov 20 (Reuters) - Electric aircraft maker BETA

Technologies ( BETA ) said on Thursday it is partnering with

Near Earth Autonomy to develop uncrewed aircraft for the

military, with flight testing slated to begin in the first half

of 2026.

Development and full demonstration of the autonomous system

should take up to a year and could be deployed within 18 to 36

months, BETA CEO Kyle Clark told Reuters.

However, the defense procurement process could change that,

he said.

BETA, which designs and manufactures electric aircraft and

propulsion systems, said Near Earth adds expertise and

experience with autonomous systems, which it has developed for

the U.S. military and major aerospace manufacturers.

With regulatory hurdles delaying commercial passenger air

taxis, companies in the sector are increasingly exploring

defense and logistics markets to diversify revenue, pushing

developers to strengthen autonomous capabilities to gain an

edge.

There is demand for "hundreds of aircraft per year - on the

low end," Clark said. Russia's ongoing war in Ukraine

demonstrates the importance of aerial logistics, he added.

The Vermont-based company plans to use its work with Near

Earth to expand its products for military users and commercial

cargo carriers, including its existing partners UPS and

Bristow.

The company, which raised $1 billion in an IPO on the New

York Stock Exchange earlier this month, has been testing

in-house autonomy systems for several years.

Recent signals from U.S. defense and transportation agencies

point to faster fielding of autonomous aircraft, Shawn Hall,

BETA's chief revenue officer said in a statement.

BETA's partnership with Near Earth complements its work with

GE Aerospace to develop a turbo generator, plus its own

expertise developing electric airplanes.