Defense Department Awarded Amprius Technologies $75 Million
The funding supports a major initiative to retrofit battery production lines for military drone use.
Updated on Sept. 28, 2026 in Electric Vehicles
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The U.S. Defense Department has awarded a grant of up to $75 million to Amprius Technologies to convert electric vehicle battery production into high-energy density drone battery manufacturing. Following the announcement, the company's shares increased 8.7% in premarket trading.
Why it matters
This grant aims to bolster domestic military supply chains by pivoting existing battery technology to support specialized aerial defense requirements. It signals a strategic shift in production capacity to meet the growing demand for unmanned aircraft systems.
The project intends to achieve an annual production capacity of 12 million cells upon completion. The total conversion initiative is estimated to cost $100 million.
The players
Amprius Technologies
This company specializes in the development and manufacturing of high-energy-density lithium-ion batteries.
Defense Department
This federal executive department is responsible for coordinating and supervising all agencies and functions of the government concerned directly with national security and the United States Armed Forces.
The details
Amprius Technologies will reconfigure an existing production line currently operated by a South Korean manufacturer to produce high-energy drone batteries. This shift redirects resources previously utilized for electric vehicle battery manufacturing to address military production needs.
Timeline
On September 28, 2026, the company stock gained 8.7% in premarket trading.
Share price growth was tracked through the market close on September 25, 2026.
The production line conversion is expected to reach completion in early 2028.
Roadmap
This move highlights the broader industry trend of adapting automotive battery technology for specialized aerospace and defense applications. It positions Amprius Technologies to secure a significant footprint in the high-growth military drone sector as manufacturing priorities evolve.
Investors may note that the company shares have risen 24% year to date, reflecting growing market confidence in the firm's strategic pivot. While this development is industry-focused, it highlights the increasing integration of automotive battery supply chains with federal defense initiatives.
The takeaway
The pivot toward high-energy drone batteries demonstrates how companies are repurposing automotive battery expertise to capture emerging defense contracts. Investors should monitor whether the 2028 production timeline is met to assess the success of this infrastructure conversion.
Further reading
Learn more about the latest innovations and industry shifts in the Electric Vehicles section.
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Should the government provide grants to private companies to expand drone battery manufacturing capabilities?
