Amprius Technologies, Inc. (NYSE:AMPX) shares are surging Tuesday following the announcement of a strategic manufacturing partnership with Nanotech Energy.
Partnership Bolsters Battery Supply Chain
Nanotech Energy will be Amprius’ first U.S.-based manufacturing partner, and the company brings expertise in advanced lithium-ion cell development and manufacturing. The two will establish a domestic supply chain for silicon battery cells, which is expected to significantly boost the ability to meet the demands of key customers, including L3Harris Technologies.
This move aligns with the updated National Defense Authorization Act, which focuses on domestic supply chains for defense and aerospace sectors. Prior to this, Amprius has primarily had an Asia-based production footprint. The collaboration is poised to increase Amprius’ global capacity beyond 2.0 GWh, addressing the rising demand for cells across commercial, industrial, and defense sectors.
The partnership marks a significant step in scaling domestic production of its industry-leading silicon-anode cells.
Needham Initiates Coverage On Amprius
In recent days, Amprius has been gaining attention in the market, bolstered by positive analyst coverage. A recent analyst initiation by Needham with a Buy rating and a $20 price target has further fueled investor interest. This endorsement reflects confidence in Amprius’ strategic direction and its potential to capitalize on emerging opportunities in the battery technology sector.
The strategic value of Amprius’ partnership with Nanotech Energy is underscored by its alignment with national security programs, which require both superior performance and a trusted U.S. supply chain. This development positions Amprius to better serve its defense customers, addressing evolving requirements with enhanced manufacturing capabilities and secure domestic production.
Stock Soars On Partnership News
AMPX Price Action: Amprius Technologies shares were up 11.79% at $14.70 at the time of publication on Tuesday, according to Benzinga Pro data.
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