Amprius Technologies, Inc. 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 grant was awarded through the department’s Industrial Base Analysis and Sustainment program, which supports domestic manufacturing capabilities considered critical to national defense. The project’s objective is to establish high-volume U.S. production of advanced batteries for Group 1, 2, and 3 drones.
Amprius plans to reconfigure a U.S.-based EV battery line operated by a major South Korean manufacturer. Upon the planned completion in early 2028, the line is expected to have annual production capacity of 12 million Amprius cells. The cells are intended to comply with domestic sourcing requirements under the National Defense Authorization Act.
The conversion is expected to cost approximately $100 million, including in-kind investments from Amprius and its South Korean manufacturing partner. According to the company, the modified line will expand its contract manufacturing relationships and increase its capacity to supply NDAA-compliant pouch cells to customers at scale.
Amprius CEO Tom Stepien said the grant is intended to establish a primary domestic source of NDAA-compliant battery production. The project will add to the company’s manufacturing network across China, South Korea, and the United States.
Amprius develops high-energy and high-power lithium-ion batteries using silicon-anode technology. The company operates a research and development laboratory and pilot manufacturing facility for silicon anodes and cells in Fremont, California, while using contract manufacturers to support larger-scale production.
The company noted that most of the total grant remains unfunded and is subject to future appropriations. Payments also depend on Amprius achieving specified milestones and receiving their acceptance from the U.S. government.
Source: businesswire.com
