Red Cat Becomes First U.S.-Based Drone Manufacturer to Source Motors From Unusual Machines

Rhea-AI Summary

Unusual Machines (NYSE:UMAC) has secured Red Cat Holdings (NASDAQ: RCAT) as its first U.S.-based drone manufacturer customer for motors. Red Cat will utilize three motor variants from Unusual Machines for a platform designed for government and commercial applications.

The initial order will be produced in a partnered facility until Unusual Machines' U.S.-based manufacturing facility is completed, with deliveries expected by the end of March. This partnership extends their collaboration on the FANG™, a high-performance FPV drone for defense applications.

The agreement comes amid increasing U.S. government restrictions on Chinese drone technology, including recent sanctions on T-Motor by the U.S. Department of Treasury's OFAC. Unusual Machines aims to provide American drone manufacturers with high-performance motors at cost parity with Chinese alternatives, focusing on domestic supply chain stability and regulatory compliance.

Positive

• First U.S. customer secured for motor production
• Initial order received from established drone manufacturer (NASDAQ: RCAT)
• Strategic positioning to capture market share from sanctioned Chinese competitors
• Expanding collaboration on defense-focused FANG™ drone project

Negative

• U.S. manufacturing facility still under development
• Temporary reliance on partnered facility for production

ORLANDO, FL / ACCESS Newswire / February 26, 2025 / Unusual Machines (NYSE:UMAC), a leading provider of NDAA-compliant drone components, has secured Red Cat Holdings (NASDAQ: RCAT) as a customer for motors. This marks the company's first partnership to develop motors built to a U.S. drone producer's specific requirements. Red Cat will use three motor variants from Unusual Machines for one of its platforms designed for government and commercial applications.

Red Cat has placed its initial order, marking a significant milestone in Unusual Machines' efforts to become a Tier 1 supplier of drone motors for American manufacturers. The motors will be among the first produced in Unusual Machines' U.S.-based manufacturing facility, which is currently under development. In the interim, production will take place in a partnered facility, that we believe will result in a seamless supply chain transition. Unusual Machines expects to begin delivering on Red Cat's first order by the end of March.

This order further strengthens the relationship between Unusual Machines and Red Cat, as the companies continue their collaborative work on the FANG™, a high-performance FPV drone designed for defense applications.

"Our goal is to provide American drone manufacturers with high-performance motors at cost parity with the Chinese-made alternatives currently in use," said Allan Evans, CEO of Unusual Machines. "Red Cat's decision to source motors from Unusual Machines underscores the demand for a domestic supply chain that supports national security and regulatory compliance."

As the U.S. government continues to tighten restrictions on Chinese drone technology, the demand for American-made alternatives is expected to grow. The recent addition of T-Motor to the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC) sanctions list highlights the urgency for domestic suppliers to fill the gap left by restricted foreign manufacturers.

Unusual Machines remains committed to strengthening the American drone industry by producing essential components domestically, ensuring long-term supply chain stability and compliance with federal regulations.

About Unusual Machines:

Unusual Machines manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in FPV (first-person view) ultra-low latency video goggles for drone pilots. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot e-commerce store. With a changing regulatory environment, Unusual Machines seeks to be a dominant Tier-1 parts supplier to the fast-growing multi-billion-dollar U.S. drone industry. According to Fact.MR, the global drone accessories market is currently valued at $17.5 billion and is set to top $115 billion by 2032.

For more information visit Unusual Machines at https://www.unusualmachines.com/.

About Red Cat Holdings, Inc.

Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow™, a small unmanned ISR system that was awarded the U.S. Army's Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry's first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our plans to become a Tier 1 supplier of drone motors for American manufacturers, our ability to deliver RedCat's first order by the end of March and our ability to achieve cost parity with Chinese made products. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. The results expected by some, or all these forward-looking statements may not occur. Factors that affect these forward-looking statements are described more fully in the section titled "Risk Factors" contained in the Company's final Prospectus filed with the Securities and Exchange Commission and the Prospectus Supplement filed with the Securities and Exchange Commission on December 17, 2024. In addition, other factors are the reaction of our potential customers to our new products and our ability to attract new customers. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Any forward-looking statement made by us herein speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether because of new information, future developments or otherwise, except as may be required by law.

Contact Information

CS Investor Relations
investors@unusualmachines.com
917-633-8980

SOURCE: Unusual Machines, Inc.

View the original press release on ACCESS Newswire

FAQ

When will Unusual Machines (UMAC) begin delivering motors to Red Cat Holdings?

Unusual Machines expects to begin delivering on Red Cat's first order by the end of March 2025.

How many motor variants will Unusual Machines (UMAC) supply to Red Cat?

Unusual Machines will supply three motor variants for Red Cat's platform.

Where will Unusual Machines (UMAC) manufacture the motors for Red Cat initially?

Initially, production will take place in a partnered facility until Unusual Machines' U.S.-based manufacturing facility is completed.

What is the significance of UMAC's partnership with Red Cat for the U.S. drone industry?

The partnership represents a shift towards domestic drone component manufacturing, supporting national security and regulatory compliance amid increasing restrictions on Chinese technology.