Xos Inc (NASDAQ:XOS) shares surged 120% in premarket trading on Tuesday after the electric commercial vehicle company secured a prototype contract from the U.S. Air Force, marking its first move into the defence market.
The award will see Xos develop a mobile charging solution for electrified support equipment and vehicles, adapting technology already used across commercial applications for military environments.
Xos was selected through the Air Force Global Strike Command Rapid Capabilities Division 2026 Showcase to provide a ruggedised version of its Xos Hub energy storage platform.
Xos Hub to Be Adapted for Military Operations
Under the prototype Other Transaction Agreement, Xos will modify its mobile battery energy storage system to provide high-capacity charging without dependence on a conventional electricity grid.
The technology is intended to support electrified vehicles and equipment operating in field conditions where access to fixed charging infrastructure may be limited.
Assembly and system integration will be carried out at Xos’s facility in Byrdstown, Tennessee, with work under the agreement scheduled to continue into late 2027.
The contract represents Xos’s first defence-sector award and gives the company an opportunity to demonstrate how its commercial energy technology can be adapted for military requirements.
Air Force Award Highlights Dual-Use Potential
Xos said the selection supports the dual-use credentials of its technology platform, which has already been deployed by commercial fleets, municipalities and ports.
“This award marks a strategic inflection point for Xos,” said Dakota Semler, Chief Executive Officer. “When the United States Air Force evaluates the market and selects our technology, it confirms what we set out to build from day one: a mobile energy platform proven in commercial operations that can meet the most demanding mission requirements in the field.”
The company cited projections that the global military power solutions market could reach $19.87 billion by 2033, representing annual growth of 7.7%.
Military Electrification Creates New Market Opportunity
The U.S. Department of Defense is the country’s largest institutional energy consumer, creating a potentially significant market for technologies capable of supplying resilient and mobile power.
Broader military electrification initiatives are also increasing demand for such infrastructure. The U.S. Army has committed to deploying microgrids at every installation and aims to operate an entirely electric non-tactical vehicle fleet by 2035.
For Xos, the Air Force contract provides an entry point into this market while allowing the company to leverage technology developed and tested through its existing commercial operations.
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