An EV battery line is planned for conversion to make drone battery cells, with expected capacity of 12 million a year.

• Amprius awarded up to $75M DoW grant to convert EV battery line for drone cell production • Retrofitted line expected to produce 12 million NDAA-compliant cells annually by early 2028 • Total project cost ~$100M, including in-kind investment from Amprius and South Korean partner Amprius Technologies (NYSE: AMPX) has been awarded a grant of up to $75 million from the U.S. Department of War through its Industrial Base Analysis and Sustainment program. The funds will retrofit an existing U.S. electric vehicle battery production line, operated by a major South Korean manufacturing partner, to produce high-energy density cells for unmanned aerial systems (Group 1, 2, and 3 drones). The conversion, expected to be completed in early 2028, would give the line capacity to produce 12 million Amprius cells annually, meeting domestic sourcing requirements under the National Defense Authorization Act. The project is estimated to cost approximately $100 million, including in-kind investments from Amprius and its South Korean partner. The upgraded line expands Amprius' contract manufacturing network, which already spans China, South Korea, and the U.S., and boosts its ability to supply NDAA-compliant pouch cells at scale. CEO Tom Stepien said the grant supports a primary domestic source of NDAA-compliant battery production, combining Amprius' technology with its partner's U.S. manufacturing capabilities. Amprius cautioned that most of the award remains unfunded pending future appropriations, and payment depends on meeting milestones that may be delayed by third-party performance issues.