Quick Summary
- Amprius Technologies (NYSE: AMPX) shares climbed approximately 10% during Monday’s premarket session.
- The company received a defense grant worth up to $75 million from the U.S. Department of War.
- Grant proceeds will transform an existing EV battery production line into a military drone battery manufacturing facility.
- The converted plant is scheduled for completion by early 2028 with annual output capacity of 12 million cells.
- Wall Street maintains a Buy consensus on AMPX with a $31.50 average price target.
Shares of Amprius Technologies (NYSE: AMPX) climbed roughly 10% in Monday’s premarket session after the battery manufacturer announced it had secured a major defense contract.
Amprius Technologies, Inc., AMPX
Trading activity pushed the stock to approximately $10.70 as investors responded positively to the Department of War award worth up to $75 million.
The funding comes via the DoW’s Industrial Base Analysis and Sustainment initiative, a program created to bolster domestic production capabilities critical to U.S. national security interests.
Amprius is honored to have been awarded a grant of up to $75 million from the United States @DeptofWar through the Industrial Base Analysis and Sustainment (IBAS) program.
šRead more below:https://t.co/mWS0fGU3Uu$AMPX #IBAS #defensetech pic.twitter.com/rS5ZDXymat
ā Amprius Technologies (@AmpriusInc) September 28, 2026
The capital will enable Amprius to repurpose an existing American electric vehicle battery manufacturing line currently run by a prominent South Korean producer.
Project Scope and Production Goals
The retrofitted production site will specialize in manufacturing high-energy density battery cells designed specifically for unmanned aerial vehicles. The facility will support Group 1, 2, and 3 drone classifications, encompassing small through medium-sized unmanned aircraft platforms.
The transformation timeline targets early 2028 for operational readiness. At full capacity, the facility will produce approximately 12 million Amprius battery cells annually.
Total project investment reaches around $100 million. The $25 million shortfall beyond the government grant will be covered through in-kind contributions from Amprius and its South Korean manufacturing partner.
Production will adhere to National Defense Authorization Act sourcing requirements. NDAA compliance is essential for accessing defense procurement opportunities that exclude foreign-manufactured components.
CEO Tom Stepien characterized the grant as instrumental in creating “a primary source of domestic, NDAA-compliant battery production.” He emphasized that combining Amprius technology with South Korean manufacturing expertise provides a competitive advantage.
Company Profile and Technology
Amprius specializes in silicon anode lithium-ion battery technology engineered for superior energy density. The core value proposition centers on delivering greater power output while minimizing weight.
This technological approach serves aviation markets, electric vehicles, and light electric transportation applications. Defense customers include drone operators and high-altitude pseudo-satellite programs where weight optimization is critical.
The company’s silicon anode design serves as a drop-in replacement for conventional graphite anodes found in standard lithium-ion batteries. Manufacturing processes integrate with established battery production infrastructure, eliminating the need for entirely new supply chain architecture.
This Pentagon award expands a global manufacturing network already operating across China, South Korea, and the United States. The domestic production capacity receives a substantial boost from this investment.
Financially, Amprius reported second-quarter adjusted earnings showing a 2-cent per share loss last August. Results aligned with analyst projections.
Quarterly revenue reached $34.03 million, surpassing the $29.30 million consensus forecast. Management guidance for fiscal 2026 projects revenue exceeding $140 million, above the Street’s $132.10 million estimate.
The company anticipates a GAAP loss of 8 cents per share for the full year, slightly below the 7-cent loss analysts expected. Despite this, analyst sentiment remains constructive.
Amprius holds a Buy consensus among covering analysts with a $31.50 average price objective. Jones Trading launched coverage last July with a Buy rating and $30 price target.
Clear Street initiated coverage in June, assigning a Buy rating with a $33 target. Needham has maintained its Buy rating and $20 price objective since March.
The grant operates under an Other Transaction Agreement designated Project acCELLerate. The fixed-price, milestone-driven structure includes roughly $22 million already committed from fiscal year 2025 appropriations, spanning September 2026 through September 2028.
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