What's Happening?
Packet Digital has been awarded up to $50 million through the Department of Defense's Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) program. This funding is aimed at developing and producing advanced, high-performance batteries
for Unmanned Aerial Systems (UAS), which will benefit the U.S. Navy, Army, Air Force, and Special Operations Command. The U.S. defense sector currently faces a significant lack of a reliable domestic supply chain for lithium-ion batteries, a critical concern as the nation seeks to maintain technical and operational superiority in air, space, and underwater operations. Packet Digital's subsidiary, Badland Batteries, is set to begin production of U.S.-made battery cells in Fargo, N.D., in 2026. These cells are designed to offer a secure domestic solution for the defense industry, providing high energy density and power performance.
Why It's Important?
The funding and subsequent production of U.S.-made battery cells are crucial for enhancing the operational capabilities of the U.S. military. By developing a domestic supply chain for lithium-ion batteries, the U.S. can reduce its dependency on foreign sources, thereby increasing national security and ensuring that military operations are not hindered by supply chain disruptions. The advanced battery technology will improve endurance, agility, and energy resilience in contested environments, directly enhancing warfighter readiness. This initiative underscores the importance of technological innovation in maintaining the United States' defense preparedness and operational advantage.
What's Next?
Packet Digital's Badland Batteries manufacturing facility is scheduled to start production in 2026, which will mark a significant step towards resolving the current dependency on foreign battery suppliers. As production ramps up, the U.S. defense sector can expect improved access to reliable energy storage technology, which is essential for modern military operations. The successful implementation of this project could lead to further investments in domestic manufacturing capabilities, potentially expanding to other critical components needed for defense platforms.
Beyond the Headlines
The development of a domestic battery production capability not only strengthens national security but also has broader implications for the U.S. economy. By investing in local manufacturing, the initiative could create jobs and stimulate economic growth in regions like Fargo, N.D. Additionally, the focus on high-energy density and power performance batteries could spur innovation in other sectors, such as renewable energy and electric vehicles, further enhancing the U.S.'s position in global technology markets.
