• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • DroneRacingLife
  • DroneFlyers
  • Newsletter
DroneLife

DRONELIFE

Stay up to date on all the latest Drone News

  • News
  • Products
  • Industries
    • Agriculture
    • Construction
    • Delivery
    • Dual Use
    • Inspection
    • Public Safety
    • Surveying
  • Enthusiasts
  • Regulations
  • Business
  • Video
  • Podcasts

Packet Digital Wins Up to $50M APFIT Award to Boost U.S. Battery Production for Defense Drones

December 1, 2025 by Miriam McNabb Leave a Comment

New investment supports U.S. efforts to scale domestic drone manufacturing and strengthen critical energy supply chains

The United States is racing to produce more U.S.-manufactured drones and reduce its reliance on foreign suppliers. A major part of that effort is securing the energy systems that power unmanned platforms. Packet Digital’s new win marks a strong step toward that goal.

Packet Digital announced that it has been awarded up to $50 million through the Department of Defense’s Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) program. The funding will support the development and production of advanced lithium-ion battery cells for unmanned aerial systems (UAS), including platforms used by the U.S. Navy, Army, Air Force, and Special Operations Command.

This investment comes as the U.S. works to build a secure, reliable domestic supply chain for battery cells — technology that is essential for any scaled drone manufacturing effort.

Closing a Critical Energy Supply Gap

The U.S. defense ecosystem does not yet have a stable domestic source for high-energy lithium-ion cells. That gap limits the nation’s ability to scale drone production and weakens long-term supply chain security. Packet Digital’s APFIT award aims to change that.

Production is planned to begin in 2026 at the company’s Badland Batteries facility in Fargo, North Dakota. The move will give the defense industry a U.S.-made option for high-performance cells with “unmatched energy density and power performance.”

Terri Zimmerman, CEO of Packet Digital, said the company’s technology is designed to meet mission needs across domains.

“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,” she said. “This capability directly enhances warfighter readiness by improving endurance, agility and energy resilience in contested environments.”

She also noted the scale of the challenge facing today’s defense supply chain.

“The U.S. currently lacks the manufacturing base for high-energy battery cells at the scale required for defense platforms,” Zimmerman added. “We are working every day to close that gap and ensure our warfighters have the tools they need.”

Supporting the Push for U.S.-Made Drones

The APFIT award also aligns with the Department of Defense’s broader push to accelerate domestic production of critical drone components. Over the last two years, federal agencies and Congress have increased support for U.S. manufacturers building flight-critical systems, airframes, sensors, and now batteries.

Energy storage is one of the most urgent bottlenecks. Drones cannot scale to meet defense demand without reliable access to high-performance batteries that meet military requirements for safety, endurance, and power output. A domestic source also helps reduce dependence on foreign suppliers and shortens logistics chains.

Strengthening this part of the supply chain supports U.S. efforts to compete globally as drone production ramps up.

Building Toward Full-Scale Production

Packet Digital’s expansion is expected to deliver a secure source of advanced energy storage for defense platforms. The company says the APFIT award “underscores a shared commitment to equipping America’s warfighters with the most reliable energy storage technology available.”

A stronger battery supply chain supports drone programs across the services and helps maintain the operational edge the U.S. seeks as innovation accelerates worldwide.

Packet Digital, founded in 2003, develops batteries, chargers, battery management systems, and power management tools used in aerospace, defense, and telecommunications. The company is headquartered in Fargo, North Dakota.

Read more:

  • Badland Batteries Launches U.S. Made 12S and 6S Battery Packs for Commercial Drones
  • Quad Nations Launch Critical Minerals Initiative: What It Means for the Drone Industry
  • Packet Digital Secures Location for U.S. Drone Battery Manufacturing Plant
Miriam McNabb

Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry.  Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.

TWITTER:@spaldingbarker

Subscribe to DroneLife here.

Filed Under: Applications, Defense, Drone News, Drone News Feeds, Dual Use, News Tagged With: APFIT, Badland Batteries, defense drones, DoD innovation, energy storage, lithium-ion cells, Packet Digital, U.S. drone manufacturing, U.S. supply chain, UAS batteries

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

LATEST

FAA Highlights First Interstate eVTOL Organ Transport Test Under Integration Pilot Program

BETA Technologies flight demonstrates how electric aircraft could support future medical transport and Advanced Air Mobility operations The Federal Aviation…

Continue Reading FAA Highlights First Interstate eVTOL Organ Transport Test Under Integration Pilot Program

Can Electromagnetic Launchers Cut the Cost of Stopping Drone Swarms?

Auriga Space and DEVCOM Armaments Center will study electromagnetic launch technology as military planners seek more affordable ways to defeat…

Continue Reading Can Electromagnetic Launchers Cut the Cost of Stopping Drone Swarms?

High Lander and Thirdeye Bring Ground-Based Detect and Avoid to the Field

Israeli UTM developer High Lander integrates Thirdeye Systems’ MeduzaX optical radar into its Vega platform in a multi-aircraft trial designed…

Continue Reading High Lander and Thirdeye Bring Ground-Based Detect and Avoid to the Field

Zipline U.S. Expansion Adds Cleveland Clinic Home Delivery and Austin Launch

Drone delivery leader recruits senior operators from Tesla, Waymo and Uber as its marketplace grows 13-fold in the first half…

Continue Reading Zipline U.S. Expansion Adds Cleveland Clinic Home Delivery and Austin Launch

NHS Expands Drone Pathology Network Across Southwest London

Healthcare logistics program aims to speed testing, reduce costs, and support care for 1.8 million patients South West London Pathology…

Continue Reading NHS Expands Drone Pathology Network Across Southwest London

Underground Drone Bases? SYNDÉO Bets the Future of Autonomous Flight Starts Below Ground

Small infrastructure company offers new twist on drone shelters By DRONELIFE Features Editor Jim Magill For people in the commercial…

Continue Reading Underground Drone Bases? SYNDÉO Bets the Future of Autonomous Flight Starts Below Ground

BRINC Public Safety Drone Maker Closes $125M Round Led by Motorola

Seattle-based BRINC secures a Motorola Solutions-led round, pushing total capital past a quarter billion dollars and targeting all 80,000 U.S.…

Continue Reading BRINC Public Safety Drone Maker Closes $125M Round Led by Motorola

SkyDrive Flies SD-05 in Yamaguchi to Test 2028 Tourism Use Case

Toyota-based manufacturer flies its SD-05 aircraft twice in Yamaguchi Prefecture to test the tourism use case for its planned 2028…

Continue Reading SkyDrive Flies SD-05 in Yamaguchi to Test 2028 Tourism Use Case

São Paulo Launches World’s First Citywide Drone Detection as a Service Network

Partnership introduces subscription-based drone detection network designed to strengthen urban airspace security R2 Wireless and Ôguen Tecnologias have announced a…

Continue Reading São Paulo Launches World’s First Citywide Drone Detection as a Service Network

Civil Liberties Groups Warn FAA Drone Rule Could Restrict Journalism

Coalition argues the proposed Section 2209 rule should better protect First Amendment newsgathering while allowing security restrictions around critical infrastructure.…

Continue Reading Civil Liberties Groups Warn FAA Drone Rule Could Restrict Journalism

Secondary Sidebar

Footer

SPONSORED

Inspired Flight Gremsy IF800 VIO F1 drones geo week

What Will It Take to Strengthen U.S. Drone Manufacturing? A Conversation with Inspired Flight’s CEO

Global Mapper Mobile data collection

Collection Ground Control Points with Global Mapper Mobile

Military Drone Mapping Solutions

How SimActive’s Correlator3D™ is Revolutionizing Military Mapping: An Exclusive Interview with CEO Philippe Simard

Photogrammetry Accuracy Standards

SimActive Photogrammetry Software: Enabling Users to Meet Accuracy Standards for Over 20 Years

NACT Engineering Parrot ANAFI tether indoor shot

Smart Tether for Parrot ANAFI USA from NACT Engineering

Blue Marble, features global mapper, features Blue Marble

Check Out These New Features in Global Mapper v25 from Blue Marble

About Us | Contact Us | Advertise With Us | Write for Us | Privacy Policy | Terms of Service

The Trusted Source for the Business of Drones.

This website uses cookies and third party services. By clicking OK, you are agreeing to our privacy policy. ACCEPT

Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT