Amprius Technologies has secured a grant of up to $75 million from the U.S. Department of Defense. This funding is intended to support the domestic production of high-density energy batteries required for unmanned aerial vehicles.
The funds are part of the Industrial Base Analysis and Sustainment program. This program supports manufacturing capabilities deemed critical for national defense. Amprius plans to use the grant to modernize its existing production line in the United States.
This line is currently used to manufacture batteries for a major South Korean automotive manufacturer. The project involves converting this facility to create high-energy density cells that will be used in unmanned systems of groups 1, 2, and 3. The conversion itself is expected to cost approximately $100 million, with the company providing additional in-kind investments.
The modernized production line is scheduled to begin operations in early 2028. Following completion, it is projected to produce 12 million Amprius cells annually. These batteries are designed to meet the domestic supply requirements set by the National Defense Authorization Act.
This will enable Amprius to supply compliant batch cells in large volumes and expand the company's existing contract manufacturing partnerships. Amprius currently operates an extensive manufacturing network spanning the United States, South Korea, and China.
The new production capacity aims to meet the growing demand for advanced battery systems and strengthen the company's ability to deliver products to key clients at scale. Amprius specializes in lithium-ion battery technology with silicon anodes, whose batteries provide higher energy density compared to traditional graphite-based cells.
The received grant continues Amprius's recent expansion into the drone aviation market. The company previously introduced its SiCore500 high-energy density cells for unmanned aviation back in September. Furthermore, Amprius already has collaborations with the Defense Innovation Unit.
Previously, the company increased its agreement for advanced drone batteries compliant with NDAA to $18.1 million. This latest project adds another production route for these battery systems and provides additional capacity for future aerospace and defense needs.
CEO Tom Stephen stated that the goal of the grant is to establish a primary source of domestic battery production. He emphasized the synergy between Amprius's technologies and the capabilities of its manufacturing partner. The company utilizes a contract manufacturing strategy to ensure scalable product output, allowing it to increase capacity without building all facilities independently. The company's headquarters in Fremont includes a research laboratory and a pilot production workshop where research on silicon anodes and high-performance battery cells continues.
The new production line will enhance Amprius's capability to supply advanced batteries domestically and support large-scale manufacturing requirements. The project is structured as a fixed-price government agreement with phased payments. A portion of the funds has already been allocated for project activities. The main agreement runs from September 23, 2026, to September 22, 2028, with payments tied to achieved project milestones. It also includes provisions regarding intellectual property rights and data, as well as cybersecurity requirements and restrictions on foreign participation.
Amprius expects the modernized line to become a significant source of domestic production. The company will continue to utilize its international manufacturing network alongside the new US capacity. This project represents another crucial step toward significantly expanding advanced battery production and positions Amprius to support unmanned systems, ensuring compliant domestic supply for these increasingly demanding applications.