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Department of War drafts EV battery factory into military drone duty with $75M grant
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The US Department of War has awarded battery developer Amprius Technologies a $75 million grant to convert a civilian electric-vehicle production line into a manufacturer of high-energy-density cells for military drones. The funding flows through the department's Industrial Base Analysis and Sustainment (IBAS) Program. The decision marks a direct repurposing of clean-transport manufacturing capacity for defense applications.
California-based Amprius builds advanced lithium-ion cells known for high energy density. In 2024, the company received a $15 million order from an unidentified buyer described only as a "leading Unmanned Aircraft System manufacturer." The identity of that customer remains undisclosed, but demand has evidently grown large enough to attract federal investment.
The grant funds conversion of an existing US-based line operated by an unnamed "major South Korean manufacturer." IBAS supports domestic manufacturing capabilities deemed critical to national security. According to program materials, the award aims to establish "high-volume, commercially viable US manufacturing for advanced battery systems that power unmanned aerial systems β Group 1, 2, and 3 drones." An additional $25 million is expected from other sources.
Conversion is scheduled for completion in early 2028. Once operational, the line is projected to produce 12 million Amprius cells per year. The output will supply NDAA-compliant pouch cells, satisfying legal sourcing restrictions that govern US defense procurement.
Amprius CEO Tom Stepien said the grant is intended to "establish a primary source of domestic, NDAA-compliant battery production." He added that the company's technology, combined with its South Korean partner's manufacturing capability, positions Amprius to "accelerate adoption of standardized, high-performance pouch cells in a fast-growing market."
The project expands Amprius' existing contract manufacturing relationships and significantly increases its ability to deliver cells at scale to key customers. It also underscores how defense priorities are reshaping civilian supply chains, pulling industrial capacity and taxpayer funding toward increasingly autonomous military systems.
