Packet Digital Secures up to $50M APFIT Award to Deliver U.S.-Made Battery Cells for UAS Systems

December 4, 2025

Funding supports Department of Defense initiative to accelerate innovative technologies

FARGO, N.D. — Packet Digital is excited to announce it 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 will drive 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 U.S. defense ecosystem currently lacks a reliable domestic supply chain for lithium-ion batteries — a critical gap as the nation works to maintain technical and operational superiority across air, space, and underwater domains. To address this need, Packet Digital’s Badland Batteries manufacturing facility in Fargo, N.D., is slated to begin production of U.S.-made battery cells in 2026. These cells will provide a secure domestic solution for the defense industry while also delivering unmatched energy density and power performance.

“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,” said Terri Zimmerman, CEO of Packet Digital. “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,” Zimmerman added. “We are working every day to close that gap and ensure our warfighters have the tools they need.”

As Packet Digital advances toward full-scale U.S. cell production, the APFIT award underscores a shared commitment to equipping America’s warfighters with the most reliable energy storage technology available. This investment strengthens a vital supply chain while reinforcing the operational edge that keeps the United States at the forefront of innovation and defense preparedness.

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About Packet Digital: Packet Digital is a leading provider of power management solutions for autonomous systems. Founded in 2003, Packet Digital develops and manufactures batteries, chargers, battery management systems, battery fleet management systems, and maximum power point trackers that enable devices to run faster, longer and cooler. Packet Digital’s products are used by customers in various industries, including aerospace, defense, and telecommunications. Packet Digital is headquartered in Fargo, N.D. For more information, visit www.packetdigital.com.

Packet Digital

3241 S. University Drive

Fargo, ND 58104

www.packetdigital.com

CONTACT: Jake Pfeifer

jacob.pfeifer@packetdigital.com