Red Cat inks $2.5M Teal 2 drone deal with two NATO allied nations

Red Cat Holdings is expanding its primary drone sales activity with specialized security and defense clients through a new contract worth $2.5 million, providing Teal 2 craft to a pair North Atlantic Treaty Organization (NATO) allied nations.

Red Cat’s announcement of the new business did not reveal the names of the two “NATO allied countries,” nor whether the full range of Teal 2 drones and navigation tech would be used for public security or military operation. Wording of the release did appear to indicate the UAVs would be delivered to national authorities rather than private buyers, suggesting their deployment will be for public security or military purposes. It was not clear from the release whether those states are actual members of the alliance, or one of its many supporters around the globe.

The new contract marks a breakthrough in Red Cat’s efforts to further internationalize its activities. Though it has provided Teal 2 drones for reconnaissance and intelligence gathering in Ukraine, the large transaction with the two NATO allies is a significant step in expanding the company’s client list beyond the US military and government security agencies like US Customs and Border Protection.

“It’s an important part of Red Cat’s mission to support our NATO allies and we look forward to equipping these new customers and many other countries with our advanced Teal 2 systems,” said company CEO Jeff Thompson. “Our American-made, rucksack-portable drones are providing warfighters with rapidly deployed reconnaissance and situational awareness to enhance the effectiveness and safety of their operations.” 

Released a year ago, Teal 2 drones are designed to max out sensor capacities for more effective surveillance and reconnaissance performance, particularly during nighttime deployment. Red Cat describes the UAV as the world’s “first to be equipped with Teledyne FLIR’s new Hadron 640R sensor” – providing what it calls the highest-resolution thermal imaging in a small form factor. Add-on tech has also equipped the craft with a range of new capabilities, including artificial intelligence applications and voice-control operation in conflict situations.

“Our Teal 2 system is the right choice not only for the US. military but also our NATO allies that are looking for small, portable, cost-effective drones that they can deploy quickly, repair in the field and are upgradable with a fully modular design, which means not being locked into stale technology over time,” said George Matus, Red Cat chief technology officer. “Additionally, Teal 2 systems are at the forefront of night vision and thermal imaging, as well as multi-vehicle control and artificial intelligence capabilities.”

In acquiring Teal in 2022, Red Cat shifted its drone development and marketing away from enterprise and consumer sectors toward hard core security, defense, and US government and military clients. As a result, it has increased its activities with US military, government agency, and private security customers, and—as its contract with NATO allied nations indicates—is intent on increasingly internationalizing that business roster.