Amprius secures $75M US grant to convert EV battery line for drone production

Amprius Technologies, a Fremont, California-based battery technology company, has been awarded a grant of up to $75 million from the U.S. Department of War to convert an existing U.S. electric vehicle battery production line for high-energy-density cells used in unmanned aerial systems.

The company plans to retrofit a production line operated by a major South Korean manufacturer. The project is expected to be completed in early 2028, and will have the capacity to produce 12 million Amprius cells annually.

What is Amprius Technologies?

Amprius Technologies develops advanced lithium-ion batteries using silicon-anode technology.

Its batteries are designed to provide higher energy density and power than conventional graphite-based cells. The technology is used for applications that require high performance, including unmanned aerial systems.

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The company operates an R&D lab and pilot manufacturing facility in Fremont and uses contract manufacturers to expand production capacity.

How Much Funding Has Amprius Raised?

Amprius has been awarded a grant of up to $75 million through the Department of Defense's Industrial Base Analysis and Sustainment (IBAS) program.

The grant will support a conversion project expected to cost approximately $100 million, including in-kind investments from Amprius and its South Korean partner.

Who Funded Amprius’ Production Project?

The $75 million grant was awarded by the U.S. Department of War through its IBAS program.

The program supports domestic manufacturing capabilities considered important to national defense.

Why the Funding Matters

The funding will help Amprius convert an existing U.S. EV battery production line to manufacture high-energy-density cells for Group 1, 2, and 3 unmanned aerial systems.

The cells are intended to meet domestic sourcing requirements under the National Defense Authorization Act (NDAA).

The project will also expand Amprius' ability to supply NDAA-compliant pouch cells to customers at higher volumes.

Who founded Amprius Technologies?

Amprius Technologies was founded in 2008 by Mark C. Platshon and is headquartered in Fremont, California.

The company operates an R&D lab and pilot manufacturing facility for silicon anodes and battery cells.

“This DoW grant is intended to establish a primary source of domestic, NDAA-compliant battery production,” said Amprius CEO Tom Stepien. “Our technology, combined with the U.S. manufacturing prowess of our South Korean manufacturing partner, positions us to accelerate adoption of standardized, high-performance pouch cells in a fast-growing market.”

Market and Business Growth

The converted production line is expected to produce up to 12 million Amprius cells annually once completed.

The project will add to Amprius' existing global manufacturing network, which includes operations and manufacturing relationships in the United States, South Korea, and China.

What Happens Next?

Amprius plans to reconfigure the existing U.S. production line, with completion targeted for early 2028.

The company will use the expanded capacity to produce high-energy-density pouch cells for unmanned aerial systems and increase its ability to serve customers requiring NDAA-compliant battery systems.

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