Packet Digital Secures $50M APFIT Award for U.S.-Made UAS Battery Cells & Production

Packet Digital has secured significant APFIT funding to advance U.S.-made lithium battery production, strengthening military energy resilience and supporting extended-range UAS, space, and underwater platform performance By Olivia Hannam / 05 Dec 2025

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Packet Digital Secures $50M APFIT Award for U.S.-Made UAS Battery Cells & Production
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Packet Digital, a provider of power management solutions for autonomous systems, has been awarded up to $50 million through the Department of Defense’s Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) program.

This award is specifically aimed at driving the development and production of advanced, high-performance batteries for Unmanned Aerial Systems (UAS), supporting the U.S. Navy, Army, Air Force, and Special Operations Command. The funding addresses a recognized critical gap in the U.S. defense ecosystem: the lack of a reliable domestic supply chain for lithium-ion batteries, which are essential for maintaining technical and operational superiority across air, space, and underwater domains.

Packet Digital’s Badland Batteries manufacturing facility in Fargo, N.D., is slated to begin the production of U.S.-made battery cells in 2026. These domestically produced cells are intended to provide a secure solution for the defense industry while also delivering high energy density and power performance.

Terri Zimmerman, CEO of Packet Digital, stated, “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.”

She added, “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 reinforces a commitment to equipping America’s warfighters with reliable energy storage technology, strengthening a vital supply chain and reinforcing the operational edge in defense preparedness.

Posted by Olivia Hannam Olivia is a Junior Editor and Copywriter at Defense Advancement. She graduated with First-Class Honours in History from the University of Exeter, where she developed a strong passion for research and clear communication. Since joining DA in 2025, Olivia’s focus lies in producing insightful content that highlights the latest developments and innovations shaping the defense sector, with a particular interest in naval technology and maritime defense. Connect
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