EnPower Expands US Battery Output for Defense & UAV Dominance

INDIANAPOLIS, IN – January 06, 2026 – EnPower, Inc., an innovator in battery technology, today announced a significant investment to expand its domestic manufacturing capabilities, a move aimed squarely at bolstering the U.S. supply chain for the critical defense and Unmanned Aerial Vehicle (UAV) sectors. The Indianapolis-based company will acquire and install state-of-the-art automated battery cell assembly lines, significantly increasing its capacity to produce high-performance lithium-ion batteries on American soil.

The new equipment, expected to be fully operational by the second quarter of 2026, will add 60MWh of annual assembly capacity. This expansion directly addresses what many in the defense community describe as a pressing national security vulnerability: a heavy reliance on foreign-sourced energy storage for everything from soldier-carried radios to advanced drone fleets.

Securing the Power for National Defense

The investment arrives at a pivotal moment. The U.S. Department of Defense (DoD) has identified an urgent need for more powerful, reliable, and securely sourced batteries to support its increasingly electrified and unmanned platforms. The global drone battery market is projected to surge from an estimated $2.36 billion in 2024 to over $11.20 billion by 2033, with military applications representing the largest and most demanding segment.

This demand is intensified by strategic initiatives like the Pentagon's 'Replicator' program, which allocated $1.1 billion in 2024 to rapidly field thousands of autonomous systems. These drones require robust power sources capable of sustaining long-endurance missions, often in harsh environments. Currently, the U.S. imports nearly 70% of its lithium-ion batteries from China, a reality that creates complex and fragile supply chains for mission-critical components.

EnPower's strategy directly confronts this issue by combining domestic assembly with a commitment to a 100% non-FEOC (Foreign Entity of Concern) material sourcing strategy. This aligns with recent federal policies like the Inflation Reduction Act (IRA), which provides incentives for manufacturers who avoid supply chains linked to nations like China, Russia, Iran, and North Korea.

"This investment is a critical step in strengthening the US battery supply chain," stated Drew Rossier, Chief Commercial Officer of EnPower, in the company's announcement. "The growth of the US UAV market has created a critical and urgent need for high-performance, secure, and domestically sourced lithium-ion batteries. Our investment demonstrates our commitment to addressing a strategic supply chain gap and supporting our customers and partners with high performing battery cells."

Fueling Indiana's 'Drone Dominance' Ambitions

Beyond its national security implications, EnPower's expansion provides a major boost to Indiana's regional economic and technological goals. The investment is explicitly aligned with the 'Indiana Initiative for Drone Dominance Task Force' (I2D2), an effort established by executive order in October 2025 to position the state as a national leader in drone technology and airspace security.

The I2D2 task force aims to create a thriving ecosystem by connecting the state's military assets, such as the Muscatatuck Urban Training Center and NSWC Crane, with academic research institutions and private industry. A key priority is strengthening Indiana's domestic drone manufacturing supply chain. By scaling up the production of a crucial component like advanced batteries, EnPower becomes an anchor tenant in this burgeoning tech corridor.

The expansion not only enhances Indiana's manufacturing base but also solidifies its role in the federal mission of achieving "American drone dominance." It represents a tangible outcome of a state-level strategy designed to attract and cultivate companies working on the cutting edge of a strategically vital industry, fostering innovation and creating high-tech jobs within the state.

The Advanced Technology Behind the Charge

The need for domestic production is matched by the need for technological superiority. Military and advanced commercial UAVs place extreme demands on their batteries, requiring a delicate balance of high energy density for long flight times, high power output for demanding maneuvers, and the ability to fast-charge safely to maximize operational tempo. Historically, optimizing for one of these characteristics often meant compromising on another.

EnPower's technology, which utilizes patented multilayer electrodes, is designed to overcome this traditional trade-off. The company's approach aims to deliver superior performance within a single cell, enabling extreme fast charging while maximizing the battery's operational lifespan and thermal stability—all critical attributes for defense applications.

This focus on next-generation capability places EnPower within a dynamic and competitive field of American innovators. Companies like Amprius Technologies, with its high-energy silicon-anode batteries, and established defense suppliers like EaglePicher and EnerSys are also racing to develop and produce advanced energy storage solutions for the military. This competitive environment, fostered by DoD programs like Jumpstart for Advanced Battery Standardization (JABS), is accelerating the pace of innovation and helping to build a more resilient domestic industrial base.

A Key Piece in America's Industrial Puzzle

EnPower's expansion is more than an isolated corporate investment; it is a tile in the larger mosaic of a renewed American industrial strategy. Since 2021, over $150 billion in investments have been announced across the U.S. battery supply chain, spurred by a federal push to onshore critical manufacturing and reduce geopolitical vulnerabilities.

However, the challenge remains immense. While the U.S. is rapidly building out cell manufacturing capacity, it still lags significantly in the upstream refining of critical minerals and the production of key electrode materials, where China maintains a commanding global lead. Achieving a truly independent supply chain requires progress on all fronts.

This investment in Indianapolis represents a crucial step in the right direction, converting national strategy into tangible manufacturing output. By focusing on the high-value, high-performance end of the market and committing to a secure supply chain, EnPower is not just expanding its factory floor; it is helping to build a more resilient foundation for America's technological and national security future.