Dragonfly Energy Holdings has completed the acquisition of substantially all of the operating assets associated with the Dakota Lithium brand for a total purchase price of $4 million. The acquisition expands Dragonfly Energy’s reach across marine, outdoor recreation, powersports, golf cart, and other specialty battery markets.
Dakota Lithium generated approximately $12 million in net revenue in 2025, despite working-capital and inventory constraints that limited product availability. The acquisition is expected to begin contributing meaningful revenue and be accretive to Adjusted EBITDA in the fourth quarter of 2026. The purchase price consisted of $1 million in cash and $3 million in Dragonfly Energy common stock, valued at $2.00 per share, representing 1.5 million shares subject to a 12-month lock-up.
Dragonfly Energy will operate Dakota Lithium as a distinct brand alongside Battle Born Batteries. In connection with the transaction, Dragonfly Energy’s existing lenders agreed to amend certain debt terms, including reducing the minimum cash covenant and allowing the next two quarters of interest to be paid in kind, expected to preserve approximately $1 million of near-term liquidity.
KEY QUOTE:
“We believe Dakota Lithium represents a compelling strategic and financial opportunity for Dragonfly Energy. The business established a meaningful multiyear revenue base across attractive specialty battery markets, but more recently faced working-capital and inventory constraints that limited product availability. We expect the acquisition to support our goal of achieving positive Adjusted EBITDA in the fourth quarter of 2026.”
Dr. Denis Phares, CEO, Dragonfly Energy
