Amprius Technologies receives up to $75 million U.S. grant for drone battery production

Amprius Technologies has been awarded a federal grant of up to $75 million from the U.S. Department of War to expand domestic production of high-energy-density batteries for unmanned aerial systems. The funding, provided through the Industrial Base Analysis and Sustainment program, will support the conversion of an existing electric vehicle battery production line into a facility capable of producing cells for Group 1, 2, and 3 drones.

The project involves reconfiguring a U.S.-based production line operated by a major South Korean battery manufacturer. The total cost of the conversion is estimated at approximately $100 million, which includes in-kind investments from Amprius and its manufacturing partner. Once completed, which is targeted for early 2028, the line is expected to have an annual capacity of roughly 12 million cells.

CEO Tom Stepien stated the grant is intended to establish a primary source of domestic, NDAA-compliant battery production to meet national defense requirements. It is noted that the award is subject to future government appropriations and the achievement of specific project milestones, as a majority of the total award remains unfunded.

Following the announcement, Amprius Technologies (NYSE: AMPX) saw positive market movement. Analysts at HC Wainwright have maintained a “buy” rating on the stock with a target price of $18.00.