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Amprius Gets Up to $75 Million to Retrofit a U.S. EV Battery Line for Drone Cells

Amprius plans to retrofit an existing U.S. EV battery line for unmanned-aircraft cells, but the $75 million award is a ceiling and most remains unfunded.
Entry901 Date Time2 min MechanicCarCody Team
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Amprius Technologies says it received a Department of War grant of up to $75 million to retrofit an existing U.S. electric-vehicle battery production line for cells intended for unmanned aircraft systems. The project is planned—not complete: Amprius projects early 2028 completion and annual capacity of 12 million cells, while saying most of the grant remains unfunded and future payments depend on accepted milestones.

Who received the grant?

Amprius Technologies announced the award on September 28, 2026. The company says the grant was made through the Department of War’s Industrial Base Analysis and Sustainment (IBAS) program, which supports domestic manufacturing capabilities considered important to national defense. The award is for up to $75 million; that ceiling should not be read as money already appropriated, obligated, or paid in full. Amprius’s announcement is the primary public source for the project details.

What factory would be converted?

The plan is to retrofit an existing U.S.-based electric-vehicle battery production line operated by a major South Korean manufacturer. Amprius has not identified the manufacturer or disclosed the facility’s location in its announcement. It describes an upgrade to an existing line, not construction of an entirely new factory.

What would the line make?

Amprius says the line is intended to produce its high-energy-density pouch cells for Group 1, 2, and 3 unmanned aircraft systems. The company describes the planned cells as intended to meet domestic-sourcing requirements under the National Defense Authorization Act (NDAA). That is a stated objective, not proof that a future facility or its output has already been certified compliant, qualified by customers, or put into service. The announcement does not identify specific military customers or drone models.

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What are the projected cost, capacity, and schedule?

Amprius estimates the conversion project will cost approximately $100 million, including in-kind contributions from Amprius and its South Korean partner. It projects that the completed line could produce 12 million cells annually, with completion expected in early 2028. Those figures are company estimates and forward-looking targets; the announcement does not establish that the retrofit is finished or that production has begun.

Is the full $75 million funded?

No. Amprius says a majority of the grant amount remains unfunded and subject to future appropriations. It also says payments are tied to the government’s acceptance of specified milestones, so the total award is not guaranteed as an immediate lump-sum payment. DroneXL separately reported that approximately $22 million had been obligated so far and cited an Amprius 8-K; that figure is secondary reporting, not independently confirmed here. DroneXL’s report is the source for that estimate.

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What this means for domestic battery production

The proposed conversion would add U.S. production capacity to Amprius’s contract manufacturing network, which the company says spans China, South Korea, and the United States. The project’s stated purpose is to establish a domestic source of cells for unmanned aircraft, but its practical contribution will depend on funding, milestone completion, and the line reaching production. The announcement does not provide a complete public funding draw schedule or name customers that have selected the planned cells.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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