Amprius Technologies (NYSE:AMPX) shares rose 11% on Monday after the company secured a grant of up to $75 million to retrofit an existing US production line for high-energy-density battery cells.
The grant was awarded through the Industrial Base Analysis and Sustainment program and will support the conversion of a US-based electric vehicle battery production line operated by a South Korean manufacturer.
The converted facility is intended to produce battery cells for unmanned aerial systems.
Production Capacity Targeted at 12 Million Cells Annually
Once completed, the retrofitted production line is expected to have annual capacity of 12 million Amprius cells.
Completion is targeted for early 2028.
The cells are intended to meet domestic sourcing requirements under the National Defense Authorization Act.
The overall conversion project is expected to cost approximately $100 million, including in-kind investments from Amprius and its South Korean manufacturing partner.
Project to Expand US Manufacturing Capacity
The modified production line will expand Amprius’ existing contract manufacturing arrangements and increase its capacity to supply NDAA-compliant pouch cells.
The project will also add to the company’s manufacturing network, which includes operations in China, South Korea and the United States.
According to the company, the primary objective of the award is to establish high-volume US manufacturing capacity for advanced battery systems used to power Group 1, 2 and 3 unmanned aerial systems.
Amprius CEO Comments on Manufacturing Project
Chief Executive Officer Tom Stepien said the grant is intended to establish a primary domestic source of NDAA-compliant battery production.
Stepien also said the combination of Amprius’ technology and the US manufacturing capabilities of its South Korean partner could support the adoption of standardized, high-performance pouch cells.
The source material did not identify the South Korean manufacturing partner or provide further details about the timing of the production-line conversion beyond the targeted completion in early 2028.
Amprius Technologies stock price
