Michigan Awards $2 Million for Five Advanced Air Mobility Projects

State agencies will test drones and aerial technologies for environmental monitoring, wildfire response, infrastructure, public safety and agriculture.

Michigan has selected five companies for advanced air mobility projects designed to solve real-world challenges for state agencies.

The Michigan Department of Labor and Economic Opportunity’s Office of Future Mobility and Electrification (OFME) announced the awards on August 11. The five projects will receive a combined $2 million through the Michigan Mobility Funding Platform’s AAM Statewide Mobility Challenges.

NextEnergy administers and manages the program. The projects pair technology companies with five Michigan state departments.

The pilots cover environmental monitoring, wildfire response, transportation infrastructure, drone detection and pesticide investigations.

“One of the best ways to accelerate innovation is to put new technologies in the hands of the people who can use them every day,” said Michigan Chief Mobility Officer Justine Johnson. “These projects will give state departments the opportunity to evaluate advanced air mobility technologies in real operating environments while helping participating companies demonstrate and refine their solutions.

By bringing government and industry together, we’re creating a pathway to deploy technologies that improve public services and strengthen Michigan’s leadership in mobility innovation.”

Five State Agencies, Five AAM Applications

The Michigan Department of Environment, Great Lakes, and Energy will work with Kohtari. The company will use aerial sensing for real-time air and water quality monitoring. The project will also support environmental incident response and data collection.

Kohtari plans to use its drone-based monitoring and sampling technology along with its BloomIQ predictive intelligence platform.

The Michigan Department of Natural Resources will partner with Orb Aerospace. The company will deploy vertical takeoff and landing drone technology for aerial mapping and wildfire monitoring. The system will also support broader natural resource management.

“Orb Aerospace and Michigan DNR are teaming up to help Michigan prepare for autonomous flight operations at scale. Orb Lassie and ARC Edge provide a powerful combination of technologies to exceed DNR aviation mission capabilities and provide interoperability across Michigan state agencies.” said Brian Davis, Co-Founder and CEO, Orb Aerospace.

The Michigan Department of Transportation will work with Westwood AI. The company will develop a road intelligence platform that combines data from drones and vehicles. The project aims to improve roadway assessments, infrastructure awareness and transportation system management.

Michigan State Police will work with Motorola Solutions on drone detection. The technology will support public safety, major event security and protection of critical infrastructure.

“The Michigan State Police Special Operations Division looks forward to exploring how emerging drone detection capabilities can be utilized to further enhance safety and law enforcement response in our state.” said Col. James F. Grady II, Director, Michigan State Police.

Finally, the Michigan Department of Agriculture and Rural Development will partner with AVOL. The company will use aerial technology to modernize pesticide drift investigations.

The system will collect hazardous samples, detect pesticide residues and help investigators visualize crop and plant damage. Michigan says the approach could improve efficiency while reducing risks to investigators.

Building a Statewide AAM Ecosystem

The new awards are part of a broader Michigan strategy to build infrastructure and practical uses for drones and advanced air mobility.

Michigan established its Advanced Air Mobility Initiative in July 2025. The statewide program aims to support the testing, production and deployment of emerging aviation technologies. It also calls for Michigan to use its manufacturing base, engineering expertise and infrastructure to support a domestic AAM industry.

The state has already invested in several projects intended to build that ecosystem.

Those efforts include M-Air, a University of Michigan initiative supported with $1 million through an earlier round of the state’s AAM Activation Fund. M-Air is expanding the university’s Mcity public-private research model into drones and advanced air mobility.

Plans call for a beyond visual line of sight drone corridor connecting the University of Michigan with the Advanced Aerial Innovation Region at Michigan Central in Detroit. The infrastructure will include a digital twin, live air traffic integration and data systems supporting multiple drone and AAM applications.

Other state-backed projects have focused on medical drone delivery and automotive parts logistics.

Michigan reported in December 2025 that more than $42 million in public and private investment had gone toward AAM-related initiatives during that year.

The latest awards take a different approach. Rather than focusing mainly on enabling infrastructure, the Statewide Mobility Challenges put the technology directly into government operations.

The five pilots will give state agencies a chance to evaluate AAM systems under real operating conditions. At the same time, participating companies can test and refine their technology around specific public-sector needs.

That combination supports Michigan’s larger goal: moving drones and advanced air mobility technologies beyond demonstrations and toward routine use.

Read more:

• Michigan’s Bet on the Low Altitude Economy: How M Air Connects Aerospace Innovation and Detroit Manufacturing
• Michigan Announces $40 Million in AAM Funding in New Report
• Michigan Launches First-Ever Uncrewed Triple Challenge