President Donald Trump and the Department of Defense have been aiming for the United States to lead in drone production, beginning with a June 2025 executive order to expedite domestic production, strengthen the supply chain and reduce reliance on foreign countries.
Trump’s proposed $1.5 trillion defense budget could accelerate drone production and supply chain efforts to help the administration reach that goal.
The massive proposal calls for $53.6 billion for the Defense Autonomous Warfare Group, including $16.9 billion to fund procurement of “unmanned systems across air, surface, subsurface, and ground domains from within the industrial base capacity,” according to the agency’s budget overview.
DOD also established the Autonomous Warfare Command under the U.S. Southern Command to support the White House’s national security priorities and efforts, according to the press release on April 21.
Read on to see how four companies are responding to DOD’s “Drone Dominance” demands.
SES AI completes NDAA-compliant conversion of its South Korea facility
Boston-based SES AI announced on April 14 that it has completed the conversion of its facility in Chungju, South Korea, to produce drone battery cells.
Battery cell production will comply with the updated requirements under the National Defense Authorization Act for fiscal year 2026. Under the NDAA, the U.S. Department of Defense would be prohibited from purchasing batteries for weapons and support systems that are made with materials sourced from foreign entities of concern, such as China or Russia, beginning Jan. 1, 2028.
Additionally, the SES is using artificial intelligence to quickly optimize drone performance for demanding cold or extreme hot weather conditions during combat.
The facility was established in 2021 as part of a three-year joint development deal with automaker General Motors to manufacture battery cells for electric vehicles. But in November 2024, GM’s venture capital subsidiary sold 13.3 million shares of SES AI for $2.7 million, as its three-year deal was nearing completion, the company told Barron’s.
In 2023, SES signed a five-year contract valued at $150 million with the South Korean government to build a lithium metal battery manufacturing and research and development facility spanning over 139,000 square feet.
6K Energy, CRG Defense sign 7-year battery deal
Battery materials maker 6K Energy and drone manufacturer CRG Defense signed a seven-year supply agreement for domestic sourcing of high-performance cathode active materials, according to an April 28 press release.
6K will supply CRG with single-crystal NMC811 cathode material from its current facility in North Andover, Massachusetts, with additional capacity coming online in late 2026, per the press release. NMC811 is composed of 80% nickel, 10% cobalt and 10% manganese.
Additionally, 6K said it will be able to meet CRG’s growth needs once its cathode active materials facility in Jackson, Tennessee, comes online, which is scheduled for 2028.
The agreement aligns with CRG’s response to the updated NDAA requirements regarding foreign entities of concern.
Unusual Machines initiates $75M materials, inventory purchase
Drone maker Unusual Machines announced on Tuesday that it initiated “strategic” purchase orders to secure access to materials and inventory across its drone component product lines.
This approach positions the company to meet accelerating demand throughout the year with a “prepared, compliant and scalable supply chain, enabling customers to meet expanding requirements,” according to the press release.
“We are focused on being material complete and ready to deliver so we can meet demand as it continues to scale,” CEO Allan Evans said in a statement. “This reflects a deliberate approach to staying ahead of demand, with the capital we recently raised allowing us to move early and deliver at the pace our customers require.”
The strategy supports President Donald Trump’s executive order to expedite domestic drone production, strengthen the supply chain and reduce the United States’ reliance on foreign countries.
