Amprius Technologies (AMPX) Stock Surges 10% on $75M Defense Contract Win

Key Highlights

• Shares of Amprius Technologies (NYSE: AMPX) surged approximately 10% during Monday’s premarket session.
• The company secured funding up to $75 million from the U.S. Department of War.
• This capital will transform an active EV battery manufacturing line into a defense-focused production facility.
• The renovated plant is slated for completion by early 2028, with annual output reaching 12 million battery cells.
• Wall Street analysts maintain a Buy rating on AMPX with a consensus target price of $31.50.

Shares of Amprius Technologies (NYSE: AMPX) climbed roughly 10% in Monday’s premarket session after the battery manufacturer announced it had secured a grant worth up to $75 million from the U.S. Department of War.

Amprius Technologies, Inc., AMPX

The stock changed hands around $10.70 after the announcement. It represents a meaningful gain for the specialized battery producer that has been steadily expanding its defense sector presence.

The funding arrives via the DoW’s Industrial Base Analysis and Sustainment program, an initiative created to support U.S.-based manufacturing operations critical to military readiness.

The capital will enable Amprius to repurpose an operational electric vehicle battery production line located in the United States. A prominent South Korean battery manufacturer currently runs this facility.

Production Facility Details

The retrofitted plant will produce high-energy density battery cells specifically engineered for unmanned aerial systems. The output will serve Group 1, 2, and 3 drones, encompassing various sizes of unmanned aircraft platforms.

The facility transformation is scheduled to wrap up in early 2028. At full capacity, production will reach approximately 12 million Amprius cells annually.

Total investment for the conversion stands at roughly $100 million. Amprius and its South Korean manufacturing partner will contribute in-kind resources to bridge the funding difference beyond the government grant.

The batteries will satisfy National Defense Authorization Act sourcing requirements. NDAA compliance is essential because it qualifies manufacturers for Pentagon contracts that exclude foreign-produced alternatives.

Amprius CEO Tom Stepien described the grant as establishing “a primary source of domestic, NDAA-compliant battery production.” He highlighted the combination of Amprius innovation and South Korean manufacturing expertise as a competitive advantage.

Company Operations and Technology

Amprius specializes in silicon anode lithium-ion batteries engineered for superior energy density. The core value proposition centers on delivering greater power output while minimizing weight.

This technology proves particularly valuable for aviation applications, electric vehicles, and light electric transportation. Military drones and high-altitude pseudo-satellites represent key target markets where weight reduction directly impacts performance.

The company’s silicon anode design functions as a direct replacement for conventional graphite anodes in standard lithium-ion batteries. Manufacturing processes are designed to integrate with established battery supply chains, eliminating the need for entirely new production infrastructure.

The recent grant expands a production network that already includes facilities in China, South Korea, and the United States. The domestic manufacturing capacity now receives substantial reinforcement.

Regarding financial performance, Amprius reported a second-quarter adjusted loss of 2 cents per share this past August, meeting analyst projections.

Quarterly revenue reached $34.03 million, surpassing the $29.30 million consensus estimate. Looking ahead to fiscal 2026, Amprius projects revenue exceeding $140 million compared to Wall Street’s $132.10 million forecast.

Management anticipates a GAAP loss of 8 cents per share for the full year, slightly below the 7-cent loss analysts had estimated. Despite this, the investment community maintains a positive outlook on the stock.

Amprius holds a Buy consensus rating among analysts with an average price target of $31.50. Jones Trading launched coverage in July with a Buy rating and $30 price objective.

Clear Street initiated coverage in June with a Buy rating and $33 target. Needham has maintained its Buy rating and $20 target since March.

The funding mechanism, an Other Transaction Agreement designated as Project acCELLerate, operates on a fixed-price, milestone-driven structure. Approximately $22 million has already been allocated from fiscal year 2025 appropriations, with the project timeline extending from September 2026 through September 2028.