Amprius Lands $75M DoW Grant to Boost U.S. Drone Battery Production
Event summary
- Amprius secured a $75M grant from the U.S. Department of War to retrofit a domestic EV battery line for high-energy density drone cells.
- The project, costing $100M total, aims to produce 12M cells annually by early 2028, meeting NDAA compliance requirements.
- Funding comes via the DoW’s Industrial Base Analysis and Sustainment program, targeting critical defense manufacturing.
- Amprius will partner with a South Korean manufacturer to reconfigure an existing U.S. production line.
The big picture
The grant underscores the U.S. government’s push to secure domestic supply chains for critical defense technologies, particularly in high-energy density batteries for unmanned aerial systems. Amprius’ ability to scale production while maintaining performance standards will determine its role in this evolving market. The $100M project reflects broader trends in defense manufacturing, where compliance with acts like the NDAA is becoming a key differentiator.
What we're watching
- Execution Risk
- Whether Amprius can meet the 2028 timeline for full-scale production amid potential delays with its South Korean partner.
- Market Dynamics
- How the NDAA-compliant supply chain shift will impact Amprius’ competitive positioning in the drone battery market.
- Funding Uncertainty
- The pace at which the remaining $75M in unfunded grant allocations will be appropriated, given milestone dependencies.