Amprius Wins $75M Pentagon Grant to Turn EV Battery Line Into Military Drone Cell Production

The U.S. Department of War has handed Amprius Technologies a $75 million grant to refit a civilian electric vehicle battery production line for the manufacture of high-energy-density cells destined for military drones. The award, routed through the department’s Industrial Base Analysis and Sustainment (IBAS) program, is meant to create a domestic, high-volume source of advanced power packs for unmanned aerial systems.

Amprius, headquartered in California, is no stranger to this corner of the market. Back in 2024 it received a $15 million order for its lithium-ion cells from an unnamed buyer that the company described only as a leading unmanned aircraft system manufacturer. The identity of that customer was never disclosed, but the scale of the new federal commitment suggests demand for the company’s energy-dense chemistry has only grown since.

According to the grant terms, the converted line is operated by what Amprius calls a major South Korean manufacturer and is already based in the United States. The stated goal is to establish commercially viable, high-volume American manufacturing for battery systems powering Group 1, 2 and 3 drones. Amprius CEO Tom Stepien framed the award as a way to secure a primary domestic source of batteries that comply with National Defense Authorization Act sourcing rules, adding that combining Amprius technology with its partner’s U.S. production footprint should speed adoption of standardized, high-performance pouch cells.

The financial picture extends beyond the federal money. Roughly $25 million in additional funding from other sources is expected to supplement the$75 million grant. Work on the conversion is scheduled to wrap up in early 2028, at which point the facility is projected to turn out about 12 million Amprius cells per year. The project also deepens Amprius’ existing contract manufacturing ties and expands its ability to supply NDAA-compliant pouch cells at scale.

The announcement lands at an awkward moment for the broader electrification conversation. Battery capacity originally built to serve zero-emission passenger cars is being redirected toward defense applications, a shift that raises questions about how much domestic cell manufacturing will be available for civilian EVs as military demand climbs. For now, the Pentagon has made its priorities clear: energy-dense cells for drones, produced on American soil, with a timeline that puts full output roughly two years out.