Dragonfly Energy Acquires Dakota Lithium for $4M, Eyes Q4 EBITDA Boost — Dragonfly Energy Holdings Corp.

Event summary

Dragonfly Energy acquired Dakota Lithium’s assets for $4M ($1M cash, $3M stock) to expand into marine, outdoor recreation, and powersports battery markets.
Dakota Lithium generated $12M in net revenue in 2025 despite working-capital constraints limiting product availability.
The acquisition is expected to contribute meaningful revenue and be accretive to Adjusted EBITDA starting Q4 2026.
Dragonfly Energy secured lender amendments reducing cash covenants, preserving ~$1M in near-term liquidity.

The big picture

Dragonfly Energy’s acquisition of Dakota Lithium extends its footprint in niche battery markets, addressing prior supply constraints with existing operational infrastructure. The deal aligns with broader industry trends toward consolidation and vertical integration in specialty energy storage solutions. With $4M in upfront costs and lender flexibility preserving liquidity, the move underscores Dragonfly’s focus on scaling revenue streams while managing financial discipline.

What we're watching

Integration Efficiency: How Dragonfly Energy leverages existing infrastructure to restore Dakota Lithium’s product availability and customer relationships.
Revenue Recovery: Whether Dakota Lithium can rebound from prior-year constraints and meet Dragonfly’s Q4 2026 EBITDA expectations.
Multi-Brand Strategy: The pace at which the dual-brand approach (Dakota Lithium + Battle Born Batteries) broadens market reach without diluting brand equity.