US-Japan Drone Collaboration: How Dual-Use Technology is Shaping the Future of Defense

Translation result [Herald Business=Kim Young-chul] The United States and Japan are tightening cooperation on the production of advanced weapons systems, including drones.

Kyodo News and other local outlets reported on the 27th that, as both governments deepen collaboration on defense equipment development using dual-use technologies, their first joint project will likely involve manufacturing a U.S. startup’s drone in Japan.

Dual-use technologies have both civilian and military applications. Drones, which emerged as “game changers” in the Russia–Ukraine war and in U.S.–Iran confrontations, are a prominent example.

Officials say the effort is aimed at checking China’s dominance of the global drone market while shoring up defense supply chains by combining U.S. software expertise with Japan’s manufacturing strength.

The United States leads in software, including artificial intelligence, but its weakened domestic manufacturing base has constrained the ability to scale production. U.S. officials view a partnership with Japan’s manufacturing sector as a way to translate advanced software into reliable, high-volume defense production—particularly for drones.

Roughly 50 drone-related firms from both countries are expected to cooperate on technology development, workforce exchanges and shared production infrastructure. Washington has reportedly encouraged Japan’s economic and industrial leadership to involve high-capacity manufacturers, notably Mitsubishi Heavy Industries.

Kyodo reported that Japan’s Ministry of Economy, Trade and Industry and the Ministry of Defense are leading the Japanese side, while the U.S. Department of Defense and the U.S. Embassy in Tokyo are coordinating the effort for the United States.

Observers expect the specific public–private arrangements for the bilateral “drone division of labor” to become clear within months.

Separately, reports say Palantir—credited with playing a decisive role in integrating AI into U.S. military operations—is expanding its outreach to the Japanese government. The Mainichi newspaper reported that Peter Thiel, chairman of Palantir Technologies, met with Prime Minister Sanae Takaichi at the prime minister’s residence last month and has stepped up contacts with senior Japanese officials.

Prime Minister Takaichi has denied in Diet questioning that the government is negotiating use of Palantir’s technology. Still, Mainichi noted it cannot rule out a move by the Takaichi administration—focused on strengthening defense—to adopt technologies trusted by U.S. forces and intelligence agencies.

Kyodo warned that faster integration of Japan and the U.S. on defense equipment development could raise concerns that “lethal offensive drones produced in Japan might be used in combat or exported to third countries.”