The U.S. Department of Defense has allocated $75 million to Amprius to convert a civilian electric vehicle battery production line into one that can produce high-energy density batteries required for military drones.

This battery developer, headquartered in California, Amprius Technologies, received an order worth $15 million in 2024, the identity of the buyer of which has never been made public. At that time, the company only stated that the buyer was a "leading drone system manufacturer." Although the identity of this mysterious customer is still unknown to the public, this new funding indicates that the demand for high-energy density batteries from Amprius is so great that the Department of Defense has invested $75 million to convert a civilian factory originally designed for zero-emission electric vehicles to produce batteries for drones.

This funding will be used to transform an existing electric vehicle battery production line in the United States, which is operated by a "large South Korean manufacturer," and the funds come from the Department of Defense's Industrial Base Analysis and Maintenance Program ( IBAS ).

IBAS is aimed at providing funding for domestic manufacturing capabilities that are deemed critical for national defense and security. According to official statements, the main goal of this appropriation is to establish high-volume, commercially viable manufacturing capabilities in the United States for advanced battery systems to supply unmanned aerial systems—drones of levels 1, 2, and 3.

Amprius CEO Tom Stepien stated: "This funding from the Department of Defense is aimed at establishing domestic primary sources for battery production that meet the requirements of NDAA." He added, "Our technology, combined with the manufacturing capabilities of our Korean manufacturing partners in the United States, enables us to accelerate the adoption of standardized high-performance soft-pack batteries in a rapidly growing market."

The company stated that the renovated production line will expand on the existing contract manufacturing relationships with Amprius and significantly enhance the company's ability to supply a large number of soft-pack batteries that meet the requirements of NDAA to key customers. The renovation of this production line is scheduled to be completed in early 2028, with an expected annual production capacity of 12 million Amprius batteries.

Source | Image: Amprius, provided by NASDAQ.