U.S. awards up to $75 million for drone battery production

Amprius to receive up to $75 million for batteries for military drones.

The U.S. company Amprius Technologies has received a grant of up to $75 million from the U.S. Department of War to produce battery cells for uncrewed aerial systems.

The funding will be used to convert an existing U.S. production line currently used to manufacture batteries for electric vehicles. After the upgrade, the facility will produce high-energy-density battery cells for Group 1, 2 and 3 drones.

Amprius plans to complete the conversion of the production line in early 2028. Once operational, it will have an annual capacity of up to 12 million battery cells.

The production line is operated by a major South Korean manufacturer, whose name Amprius has not disclosed. The total cost of the project is expected to be about $100 million, including the federal grant and contributions from Amprius and its South Korean partner.

The new capacity is intended to support battery production that complies with the requirements of the National Defense Authorization Act (NDAA). The company also plans to increase the availability of pouch cells for customers requiring NDAA-compliant products.

The grant was awarded under the Industrial Base Analysis and Sustainment program, which funds U.S. manufacturing capabilities considered important to national defense.

Amprius has not disclosed the technical specifications of the future batteries, the distribution of production among the three drone groups, or the potential customers.