KULR and Hylio Forge Texas Alliance for NDAA-Compliant Drone Batteries

HOUSTON, TX – February 18, 2026 – In a significant move to bolster the domestic drone industry, energy-systems innovator KULR Technology Group and agricultural drone manufacturer Hylio, Inc. have announced a strategic collaboration. The partnership will establish a Texas-based production line for highly advanced, secure battery systems designed for Hylio’s U.S.-built unmanned aerial systems (UAS), addressing a critical need for secure components in both the agriculture and defense sectors.

The joint development agreement, announced today, aims to design, qualify, and manufacture battery packs that are compliant with the National Defense Authorization Act (NDAA). This focus on a secure, U.S.-based supply chain directly counters the widespread reliance on foreign components and positions the companies to capitalize on growing federal and commercial demand for trusted drone technology.

Securing the Skies and the Soil

The core of this collaboration is the emphasis on NDAA compliance, a term that has become a crucial differentiator in the UAS industry. Federal regulations, particularly Section 848 of the FY20 NDAA and the subsequent American Security Drone Act, explicitly prohibit the use of drones and critical components—including batteries, flight controllers, and data links—from designated foreign entities, most notably those based in China. This legislation is designed to mitigate risks of espionage and cybersecurity threats to national and economic security.

For government agencies and contractors, from the Department of Defense to local public safety departments, NDAA compliance is non-negotiable. This has created a bifurcated market where drones are either eligible for government work or they are not. By developing and manufacturing battery systems domestically, KULR and Hylio are ensuring their platforms meet the stringent requirements for federal procurement and critical infrastructure applications. This partnership mirrors a broader industry trend seen in programs like the Defense Innovation Unit’s “Blue UAS” list, which provides a roster of vetted, secure drones for military use, and the industry-led “Green UAS” certification for dual-use platforms.

“Domestic, NDAA-compliant energy storage is becoming a foundational requirement for advanced unmanned and defense-adjacent systems,” said Michael Mo, CEO of KULR Technology Group, in the official announcement. “Our joint development collaboration with Hylio reflects a shared commitment to U.S.-based design and manufacturing.”

Powering the Next Leap in Precision Agriculture

While the national security implications are profound, the immediate impact will be felt across America’s farmland. The global agricultural drone market is projected to more than double from $4.08 billion in 2026 to $8.65 billion by 2032, driven by the need for greater efficiency and sustainability in farming. Drones are at the forefront of this precision agriculture revolution, enabling farmers to apply water, fertilizer, and pesticides with pinpoint accuracy, monitor crop health, and operate in conditions that would sideline heavy ground equipment.

Hylio has already established itself as a key American player in this space with its lineup of robust agricultural drones, such as the AG-272, a so-called “Texas-sized drone” with an 18-gallon capacity. However, the performance of any drone is fundamentally limited by its power source. An unreliable or underperforming battery can mean shorter flight times, reduced payload capacity, and increased operational downtime—all critical factors for a farmer’s bottom line.

This is where KULR’s expertise becomes transformative. The company is renowned for its advanced thermal management and battery safety technologies, originally developed for and trusted by demanding clients like NASA, the U.S. Navy, and Lockheed Martin. Its proprietary Thermal Runaway Shield (TRS) is designed to prevent catastrophic battery failures by stopping the dangerous cell-to-cell propagation of a thermal event. Integrating this level of safety and performance into Hylio’s drones is expected to enhance reliability, extend operational windows, and provide farmers with a more dependable and effective tool.

A Texas-Sized Bet on Domestic Manufacturing

The decision to center engineering and manufacturing activities in Texas taps into the state’s burgeoning high-tech ecosystem and aligns with a national trend of “reshoring” critical manufacturing capabilities. This collaboration is a case study in rebuilding domestic supply chains for technologies deemed vital to economic and national security. For Hylio, it strengthens its brand promise of delivering American-made platforms, a commitment already demonstrated with its in-house, NDAA-compliant GroundLink controller.

“We are focused on delivering high-performance, American-made drone platforms to farmers and government customers alike,” noted Arthur Erickson, CEO of Hylio. “Partnering with KULR on domestically engineered and manufactured battery systems strengthens our supply chain, enhances performance capabilities, and supports the growing demand for NDAA-compliant UAS solutions.”

The partnership will explore multiple battery chemistries and pack configurations, signaling a long-term commitment to innovation that will support not only Hylio’s current drone models but also next-generation platforms. As competitors in the drone and battery sectors also form alliances to secure their own supply chains, such as the recent partnership between Amprius Technologies and Nanotech Energy, the KULR-Hylio agreement underscores a powerful shift in the industry. The race is no longer just about features and price, but about security, trust, and the resilience of the supply chain, positioning this Texas-based collaboration at the forefront of a new era in American drone technology.