JETCAT × SCHAEFFLER

Confidential // Restricted Access

Licensed series production — P420 turbine
LICENSED SERIES PRODUCTION · CONCEPT

JetCat × Schaeffler

Taking the combat-proven P420 turbine from craft-scale to industrial series production — under license, on a partner with the precision, bearings and scale to build tens of thousands.

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The Model

What “licensed manufacturing” actually means here

JetCat owns the design, the know-how and the type approval. Schaeffler owns industrial-scale precision manufacturing. A license agreement lets Schaeffler build the P420 in series against JetCat’s specification, paying a royalty per unit — without JetCat having to build a factory, and without Schaeffler having to invent a turbine.

Who owns what
IP → Royalty

JetCat licenses design, drawings, ECU firmware and process specs. Schaeffler pays a per-unit royalty and/or a fixed license fee.

What Schaeffler builds
Series line

Schaeffler industrializes the design: tooling, fixtures, automated assembly, QA — turning a 15k/yr craft output into a scalable production line.

What stays with JetCat
Control

Type design authority, brand, customer relationships and the technology roadmap stay with JetCat. Quality gates are contractually enforced.

Why Schaeffler

The one partner whose core business is the hardest part of a turbine

A micro-turbine spinning at up to 98,000 rpm lives or dies on one component: the bearing system. That is precisely Schaeffler’s home turf — high-speed precision bearings, rotating assemblies and mass-manufacturing at aerospace tolerances.

⚙️

High-speed bearings

The P420 turns at 30k–98k rpm. Bearing design, tolerancing and lifetime are the #1 reliability driver — and Schaeffler’s core competency worldwide.

🏭

Mass precision manufacturing

Schaeffler runs high-volume precision lines across automotive and aerospace. Scaling from 15k to 100k+ units/yr is a manufacturing problem they solve daily.

🛡️

Aerospace & defense credibility

A Schaeffler-built engine carries industrial QA weight that defense primes (Raytheon, MBDA, Kratos) and European MoDs trust for series procurement.

“JetCat has the combat-proven design and the type authority. Schaeffler has the bearings, the tolerances and the volume. Neither can reach the mass-deployment market alone at the required rate — together they can.”

The strategic thesis in one line.
Division of Labour

Clean lines, no overlap

JetCat

Licensor · Design Authority
  • Design & IP — full P420 drawings, materials, ECU firmware
  • Type approval & configuration control
  • Technology roadmap — next-gen variants, upgrades
  • Brand & customers — defense primes, JetCat Defense (US)
  • Acceptance testing spec & final sign-off criteria

Schaeffler

Licensee · Series Manufacturer
  • Industrialization — tooling, fixtures, automation
  • Bearing system — high-speed rotor bearings (core strength)
  • Volume production — scalable line, supply chain
  • Series QA — statistical process control, traceability
  • Cost-down — value engineering at volume, per-unit royalty to JetCat
Deal Flow

From handshake to full-rate production

A licensed-manufacturing deal runs in defined gates. Each gate de-risks the next and keeps IP protected until commitments are firm.

01

NDA & Term Sheet

Mutual NDA, then a term sheet: license scope, exclusivity, territory, target volumes, royalty model. Protects both sides before any drawings move.

Weeks 0–4
02

Technical Feasibility & Transfer Audit

Schaeffler audits the design for manufacturability at volume; JetCat scopes the technology-transfer package (drawings, specs, process, ECU).

Months 1–3
03

License Agreement

Binding license: royalty per unit + minimum annual volumes, quality gates, field-of-use (e.g. defense), IP protection, audit rights, term & exit.

Months 3–6
04

Industrialization & Pilot Line

Schaeffler builds tooling and a pilot line; first articles are validated against JetCat acceptance-test spec. Delta-qualification of any process changes.

Months 6–14
05

Low-Rate → Full-Rate Production

Ramp: low-rate initial production, then full-rate. Continuous royalty flow to JetCat; JetCat retains design authority and roadmap.

Year 2+
Proposed Structure

How to structure the licensed manufacturing

A workable model separates cleanly into three layers: a license & IP layer, a manufacturing & supply layer, and a commercial & governance layer. Each has its own contract, so IP, production and money stay independently controllable.

Recommended headline model
A non-exclusive-by-default license with a defense field-of-use carve-out, a per-unit royalty plus minimum annual volume, and JetCat retaining design authority. Optional: a thin JV entity purely for the defense channel.
2 · ManufacturingSupply & Quality Agreement
Schaeffler industrializes and produces; JetCat sets acceptance-test spec and quality gates. Covers first-article inspection, statistical process control, traceability, delta-qualification of any process change, and audit rights. This is where Schaeffler’s bearings & precision lines carry the P420.
3 · CommercialGovernance & Royalty Terms
Who sells, who invoices, how royalties flow, and how the partnership is steered. A joint steering committee (roadmap, quality, volume forecast) plus clear rules on customer ownership, brand use, and export-control responsibility (BAFA / end-user).
The Money

How JetCat gets paid — a layered royalty

Upfront
License fee

One-time technology-access fee on signing — pays for the transfer package and locks commitment.

Per unit
Royalty / engine

A fixed € amount or % of factory cost per P420 built — the core recurring revenue, scaling with volume.

Floor
Minimum volume

Minimum annual royalty / take-or-pay — protects JetCat if Schaeffler under-produces, and justifies any exclusivity.

Upside
Milestones

Step-downs at high volume + milestone bonuses (e.g. first defense contract) to align both sides on scaling.

Must-have clauses
Design authority
JetCat controls the type design; no unilateral changes by the licensee.
No sublicensing
License is personal to Schaeffler; no pass-through to third parties.
IP escrow
ECU firmware & critical drawings in escrow, released only on defined default.
Field-of-use
Separate civil vs. defense rights; defense channel can stay with JetCat / JetCat Defense.
Quality gates
Every unit passes JetCat acceptance spec; failure suspends shipment, not just money.
Term & exit
Defined term, renewal, and clean wind-down: tooling ownership, last-buy, IP return.
Recommendation

Start with a Technology License + Supply/Quality Agreement (fastest, lowest structural risk). Keep the defense field-of-use either with JetCat or in a small dedicated JV so export control and margins stay clean. Add exclusivity only in exchange for a hard minimum-volume commitment. This gives JetCat volume + royalties without losing IP or the customer — and gives Schaeffler a proven product to fill a precision line.

The Product

JetCat P420 — built for mass deployment

The P420 is JetCat’s ~100 lbf-class, P400-derived turbine, optimized for expendable/attritable platforms: faster startup, dual-redundant ignition, enhanced reliability. Combat-proven lineage (P400-PRO deployed operationally in Ukraine).

Thrust class~100 lbf / ~445 N
Base platformP400 series
RPM range30k – 98k
IgnitionDual-redundant
Optimized forMass deployment
ArchitectureRadial comp · axial turbine
Control32-bit ECU · CAN

Why it matters for series

  • COTS-leaning design reduces exotic-material dependence — friendlier to industrial supply chains
  • Electric start (no pyrotechnics) — simpler, safer high-volume assembly
  • Proven P400 lineage — the hard engineering is already done and battle-tested
  • Attritable price point — the market wants volume, not exquisite
The Opportunity

Why now, and why this is big

0
Units/yr today (JetCat craft capacity)
Ceiling to break
0
Engines built since 2000 — proven design
Track record
0
Series target with an industrial partner
The unlock
0
Cheaper than legacy aerospace turbines
Cost position

Production capacity: craft vs. licensed series

Illustrative — the industrial partner is what breaks the volume ceiling
JetCat craft (≤15k/yr)
JetCat × Schaeffler licensed series

The drone war made small turbines a mass-consumption item. Whoever can build proven engines at industrial rate — not hundreds, but tens of thousands per year — owns the propulsion layer of the attritable-systems market. A JetCat × Schaeffler license is the fastest credible path there.

Anticipated Questions

What the JetCat CEO will want answered

“How is my IP protected?”
Field-of-use limits, no sublicensing, ECU source escrow, audit rights, and design authority stays with JetCat. Royalty tied to units, not a buyout.
“Why not just build it myself?”
Building a 100k/yr precision line costs years and hundreds of millions. Schaeffler already has the machines, bearings and QA. Volume without the capex.
“Who owns the customer?”
JetCat keeps brand and customer relationships (incl. JetCat Defense US). Schaeffler is the contract manufacturer, not the market face — unless jointly agreed.
“Export control?”
Dual-use / BAFA & Wassenaar handled at license level with defined field-of-use and end-user controls; both German entities, simplifying transfer.
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