Defense Department Awarded Amprius $75 Million Grant
The funding supports a shift in battery production capacity for drones rather than electric vehicles.
Updated on Sept. 28, 2026 in Electric Vehicles
Live Poll
Should the government provide grants to private companies to expand drone battery manufacturing capabilities?
The U.S. Department of Defense has awarded a grant of up to $75 million to Amprius Technologies to convert existing battery production lines. This project will transition manufacturing capacity from electric vehicle batteries to high-energy density cells for drones.
Why it matters
The grant repurposes manufacturing resources to meet defense-specific needs, effectively changing the output focus of current production lines. This shift reflects a strategic investment in specialized battery technology rather than the broader consumer electric vehicle market.
The project represents a $100 million initiative to retrofit manufacturing capacity, with $75 million covered by the federal grant. Upon completion in early 2028, the line is expected to produce 12 million cells annually.
The players
Amprius Technologies
A developer of high-energy density battery technology previously focused on the electric vehicle market.
Department of Defense
The federal agency overseeing national security and the procurement of specialized defense technologies.
The details
Amprius Technologies plans to reconfigure an existing production line currently operated by a South Korean manufacturing partner. By retrofitting this infrastructure, the company will pivot its assembly process to focus on high-energy density batteries designed specifically for unmanned aerial vehicles. This technical conversion is a significant shift in production utility from the company's previous electric vehicle battery focus.
Timeline
September 25, 2026: Shares closed after a 24% year-to-date increase.
September 28, 2026: Amprius stock gained 8.7% in premarket trading to reach $10.60.
Early 2028: Project completion is expected.
The Home Front
This move highlights the ongoing pivot in battery manufacturing toward specialized high-performance applications. It signals a departure from the recent trend of scaling general-purpose electric vehicle capacity to meet broader consumer demand.
This shift in manufacturing focus means that industry capacity for consumer-grade electric vehicle batteries may see less investment as specialized drone technology takes priority. Homeowners should track how this reallocation of production resources influences the long-term cost and availability of advanced battery cells for personal transportation.
The takeaway
The Defense Department grant underscores a major shift in how battery manufacturers are prioritizing their production pipelines. Investors and tech enthusiasts should track the early 2028 completion date as a benchmark for when this facility begins its shift to high-density drone cell output.
What happens next
The production line conversion is scheduled for completion in early 2028.
Further reading
For broader trends in battery development and charging infrastructure, see our Electric Vehicles section.
Live Poll
Should the government provide grants to private companies to expand drone battery manufacturing capabilities?
