Department of War Awards $75 Million Grant to Convert EV Battery Line for Drone Production
Amprius Technologies will partner with a South Korean manufacturer to produce 12 million cells annually by early 2028.
The US Department of War has awarded California-based battery developer Amprius Technologies a $75 million grant to repurpose a civilian electric vehicle battery production line for military drone applications.
What Happened
The funding was issued through the Department of War’s Industrial Base Analysis and Sustainment Program (IBAS), which aims to strengthen domestic manufacturing capabilities deemed critical to national security. The grant will facilitate the conversion of an existing US-based EV battery production line operated by a major South Korean manufacturer. According to official documentation, the primary objective is to establish high-volume, commercially viable US manufacturing for advanced battery systems that power Group 1, 2, and 3 unmanned aerial systems. The source material notes that Amprius previously received a $15 million order in 2024 from an anonymous "leading Unmanned Aircraft System manufacturer," indicating existing demand for its energy-dense lithium-ion cells.
Why It Matters
This initiative highlights a strategic pivot in domestic battery supply chains, shifting capacity from consumer electric vehicles to defense-oriented autonomous systems. Amprius CEO Tom Stepien stated that the grant is intended to establish a primary source of domestic, NDAA-compliant battery production. The conversion is planned for completion by early 2028, at which point the line is expected to have the capacity to produce 12 million Amprius cells annually. This move underscores the growing intersection of civilian EV battery technology and military hardware, leveraging existing manufacturing partnerships to scale production of standardized, high-performance pouch cells for a fast-growing market.
The Bottom Line
Amprius Technologies will convert a South Korean-operated EV battery line in the US to produce drone batteries by 2028, supported by a $75 million Department of War grant and additional funding from other sources.
