Amprius Technologies has been awarded a grant of up to $75 million from the U.S. Department of War to convert an existing domestic electric vehicle battery production line into manufacturing capacity for high-energy-density cells used in unmanned aerial systems.
The department awarded the funds through its Industrial Base Analysis and Sustainment program, which supports domestic manufacturing capabilities considered important to national defense. The project is intended to establish high-volume U.S. production of advanced batteries for Group 1, Group 2, and Group 3 drones. Amprius Secures $75 Million Gra…
Amprius plans to use the funding to reconfigure an existing U.S.-based EV battery production line operated by a major South Korean battery manufacturer.
The conversion is expected to be completed in early 2028 and is planned to provide annual capacity of approximately 12 million Amprius cells.
The cells are intended to comply with domestic sourcing requirements under the National Defense Authorization Act, giving Amprius additional capacity to supply U.S. defense and aerospace customers seeking domestically produced battery technology.
The total conversion project is expected to cost approximately $100 million, including in-kind contributions from Amprius and its South Korean manufacturing partner.
Importantly, the government award is for up to $75 million rather than guaranteed upfront funding.
Amprius disclosed that a majority of the total award remains unfunded and is subject to future government appropriations. Payments also depend on the achievement and U.S. government acceptance of specified project milestones. Amprius Secures $75 Million Gra…
The project expands Amprius’ existing contract manufacturing strategy, through which the company uses external production partners to increase capacity without building every manufacturing facility itself.
Amprius currently has manufacturing relationships spanning China, South Korea, and the United States.
The converted U.S. line is expected to increase the company’s ability to provide NDAA-compliant pouch cells at commercial scale while creating a larger domestic manufacturing base for its silicon-anode technology.
Amprius develops high-energy and high-power lithium-ion batteries using silicon-based anodes.
The company says its technology can provide up to twice the energy density, range, and flight time of conventional graphite-based lithium-ion cells, depending on the application and product configuration.
These characteristics are particularly relevant for unmanned aerial systems, where battery weight and energy density directly affect flight duration, payload capability, and overall platform performance.
Higher-energy-density batteries can potentially allow drones to fly farther or longer without proportionally increasing battery weight.
Amprius is headquartered in Fremont, California, where it operates a research and development laboratory and pilot manufacturing facility focused on silicon anodes and battery cells.
Its broader commercialization strategy relies heavily on contract manufacturers, allowing it to expand production by adapting existing manufacturing assets rather than requiring the company to finance entirely new factories.
The $75 million government award would significantly increase Amprius’ U.S. production capacity if the project proceeds according to plan and all milestone-related funding is received.
The converted production line is intended specifically to support standardized pouch cells for defense and commercial customers requiring domestically sourced battery products.
The project also reflects increased emphasis on establishing U.S.-based supply chains for batteries and other components used in drones, aerospace systems, and defense technology.
Amprius said the line will become a primary source of NDAA-compliant domestic battery production as customers increasingly seek high-performance energy storage products that meet U.S. sourcing requirements.
The company continues to develop batteries for aerospace, defense, mobility, and other applications where weight, energy density, and power performance are important.
Its recent product development includes high-energy cells aimed specifically at unmanned aviation and long-endurance applications.
The government-backed production conversion provides a potential path for Amprius to move more of that technology into high-volume domestic manufacturing.
However, the project’s final scale and timing remain dependent on government appropriations, milestone performance, the participation of its manufacturing partner, and Amprius’ ability to reproduce its targeted battery performance at commercial volumes.
KEY QUOTES:
“This DoW grant is intended to establish a primary source of domestic, NDAA-compliant battery production. Our technology, combined with the U.S. manufacturing prowess of our South Korean manufacturing partner, positions us to accelerate adoption of standardized, high-performance pouch cells in a fast-growing market.”
Tom Stepien, CEO Of Amprius Technologies
