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 will support the development and production of advanced, high-performance batteries intended for Unmanned Aerial Systems (UAS), benefiting 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, which is a critical concern as the nation aims to maintain technical and operational superiority in air, space, and underwater operations.
Packet Digital’s Badland Batteries manufacturing facility in Fargo, N.D., is scheduled to start the production of U.S.-made battery cells in 2026 to resolve this dependency. These cells are designed to offer a secure domestic solution for the defense industry while also providing high energy density and power performance.
Terri Zimmerman, CEO of Packet Digital, commented, “Our advanced high-power, high-energy density lithium-ion cell technology is a mission-critical enabler for extended-range UAS operations, space-based platforms, and submersible assets. This capability directly enhances warfighter readiness by improving endurance, agility and energy resilience in contested environments.
“The U.S. currently lacks the manufacturing base for high-energy battery cells at the scale required for defense platforms. We are working every day to close that gap and ensure our warfighters have the tools they need.”
The APFIT award highlights a shared dedication to equipping American warfighters with reliable energy storage technology. This investment is intended to fortify a vital supply chain while helping to reinforce the operational advantage that keeps the United States at the forefront of innovation and defense preparedness.
