New Hampshire expansion will quadruple production capacity as the U.S. works to build a domestic supply chain for critical drone components
U.S. drone propulsion manufacturer ePropelled has announced a major expansion of its New Hampshire manufacturing operations. The project is supported by $60 million in U.S. government funding.
The company will expand its production footprint from 20,000 square feet to 80,000 square feet in Laconia, New Hampshire. The expansion will increase propulsion system production capacity by more than four times, according to ePropelled.
Funding comes through the Department of War’s Industrial Base Analysis and Sustainment program. The program supports efforts to strengthen the U.S. industrial base and domestic production of critical technologies. ePropelled says the investment will help meet demand from government programs, allied nations, and commercial drone manufacturers.
The announcement comes as U.S. policymakers and manufacturers focus increasingly on the components inside drones, not only the finished aircraft.
Scaling U.S. Propulsion Manufacturing
The expanded facility will add automated production lines, precision motor manufacturing, controller assembly, automated testing, and integrated quality systems. ePropelled plans to increase production of motors, electronic speed controllers and complete propulsion systems.
The project will also add manufacturing and engineering jobs in New Hampshire, according to the company. The new space will include expanded production cells, environmental testing capabilities and additional engineering resources.
“This investment represents a significant milestone for ePropelled and for the U.S. advanced manufacturing sector,” said Nick Grewal, CEO of ePropelled. “As demand for high-performance uncrewed systems continues to accelerate, expanding our manufacturing capacity ensures that we can deliver reliable, scalable, and secure propulsion systems produced in the United States. We are proud to support the government’s objective of strengthening domestic manufacturing while helping customers across government and commercial markets deploy advanced capabilities faster.”
The company describes its products as dual-use technology for government and commercial applications. Its propulsion systems serve uncrewed aircraft as well as ground and marine vehicles.
Critical Components Become a Supply Chain Priority
The investment addresses a challenge: building U.S. drones at scale requires a domestic or trusted supply chain for the components inside them.
Motors, electronic speed controllers, batteries, sensors and communications systems are among the building blocks needed for large-scale UAS production. A June DRONELIFE analysis of U.S. manufacturing challenges noted that increasing aircraft production requires corresponding capacity throughout this supplier network.
That issue has grown more important as federal policy moves toward trusted and domestic UAS supply chains. Even U.S.-made platforms have historically depended on globally sourced motors, ESCs, batteries and sensors.
For ePropelled, today’s expansion builds on a broader effort to localize its propulsion supply chain.
In August 2025, the company reported that it was expanding its Laconia manufacturing operation to produce NDAA-compliant propulsion systems. The facility was designed to bring processes including coil winding, rare-earth magnet rotor assembly, balancing, motor and controller assembly, software installation and quality control into U.S. production.
The company has also addressed one of the supply chain’s less visible dependencies: permanent magnets.
Last year, ePropelled entered a development agreement with USA Rare Earth to establish a domestic supply of sintered neodymium magnets for its motors. The agreement reflected growing industry concern about access to rare-earth magnets, which are critical to many high-performance electric motors.
From Components to Integrated Propulsion Systems
ePropelled has also expanded beyond individual motors toward integrated propulsion and power management systems.
Earlier this year, the company introduced additional electronic speed controllers and Intelligent Power Systems. These technologies manage motor performance, electrical power and system data across uncrewed platforms.
Its product portfolio includes Sparrow motors for smaller UAVs, Falcon propulsion systems for higher-power applications, and Hercules hybrid systems for longer-endurance aircraft. The company has also introduced an integrated propulsion platform for agricultural drones that combines motors, ESCs and intelligent power management.
The new federal investment could allow ePropelled to manufacture those technologies at significantly greater scale.
“Our mission has always been to deliver world-class electric propulsion technology designed, engineered, and manufactured in America,” Grewal added. “Because every ePropelled product is dual-use, our technologies can serve a broad range of government and commercial missions. With this expansion, ePropelled is uniquely positioned to become one of the nation’s premier suppliers of propulsion systems for uncrewed aircraft and other advanced mobility platforms.”
The expanded manufacturing operation will become fully operational after facility upgrades and equipment installation are complete. The company did not provide a completion date.
Read more:
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.
Leave a Reply