Summary

Amprius says a US Department of War grant of up to $75 million will support converting an existing US EV battery line to make cells for military drones. The company targets annual capacity of 12 million cells by early 2028.

Amprius Technologies says it has been awarded a US Department of War grant of up to $75 million to convert an existing US electric-vehicle battery production line to make high-energy-density cells for unmanned aerial systems. The company expects the reconfigured line to be ready in early 2028, with planned capacity of 12 million cells a year.

The award comes through the department’s Industrial Base Analysis and Sustainment program, which funds domestic manufacturing capabilities considered important to national defence. Amprius says the batteries are intended for Group 1, 2 and 3 drones and to meet domestic sourcing requirements under the National Defense Authorization Act (NDAA).

An EV battery line planned for conversion

The project would repurpose a US-based production line currently operated by a South Korean battery manufacturer. Amprius has not named the partner in the announcement. The conversion is expected to cost about $100 million, including in-kind investments from Amprius and its partner.

The planned annual capacity is a target for the completed line, not its current output. Amprius describes the cells as high-energy-density pouch cells and says the project would expand its existing contract-manufacturing relationships in the United States.

Using an existing battery line for a different market would redirect manufacturing capacity from EV cells to cells intended for military drones. The proposed domestic supply is intended to support customers seeking batteries that meet NDAA sourcing requirements. Amprius says the project would add to its manufacturing network in China, South Korea and the United States.

Funding depends on appropriations and milestones

The $75 million figure is the maximum grant amount, rather than a statement that the full amount is already funded. Amprius says a majority of the award remains subject to future appropriations. Payments also depend on the US government accepting specified project milestones.

The early-2028 completion date and 12-million-cell annual capacity are company projections for a project that still requires the production line to be reconfigured. The announcement therefore describes a planned expansion of US battery manufacturing, with the final funding and delivery tied to appropriations, milestone progress and the partner’s role in the work.

Sources