US Department of War Grants Amprius $75M to Convert EV Battery Line for Military Drone Cells
Amprius Technologies has secured a 25 million is expected to come from other sources, bringing the total investment to roughly $100 million.
The grant, issued through the Department of War’s Industrial Base Analysis and Sustainment (IBAS) Program, will fund the conversion of an existing US-based EV battery manufacturing line operated by what officials describe as a major South Korean manufacturer. The program is designed to strengthen domestic industrial capacity that the Pentagon considers vital to national security. According to the award language, the primary objective is to establish high-volume, commercially viable US manufacturing for advanced battery systems that power unmanned aerial systems — specifically Group 1, 2, and 3 drones.
The line will produce NDAA-compliant pouch cells, a requirement for defense contractors supplying the US military. Amprius CEO Tom Stepien said the grant is meant to create a primary source of domestic, NDAA-compliant battery production, adding that the combination of Amprius technology and its South Korean partner’s manufacturing capabilities would accelerate adoption of standardized high-performance pouch cells in a fast-growing market. The conversion is slated for completion in early 2028, at which point the line is expected to have the capacity to produce 12 million Amprius cells annually.
Amprius had already signaled strong demand for its energy-dense lithium-ion cells. In 2024, the company received a $15 million order from an anonymous customer identified only as a leading unmanned aircraft system manufacturer — an order that hinted at the defense sector’s growing appetite for advanced battery technology. With the latest grant, that demand signal has translated into a full-scale industrial pivot.
The move highlights a broader trend of EV supply chain infrastructure being repurposed to serve military and aerospace applications. The Biden administration’s earlier efforts to expand domestic EV manufacturing have long been framed by supporters as a dual-use investment, since the same advanced manufacturing base that produces electric vehicles can also produce the batteries needed for defense systems. Whether that framing holds as the line transitions to drone production remains to be seen.
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