The US Department of Defense’s Office of Strategic Capital (OSC) has issued a conditional loan commitment of up to $820 million to Performance Drone Works (PDW) to expand domestic manufacturing of critical unmanned aerial system (UAS) components.
Combined with private capital, the funding will support increased production of drone propulsion systems, power controls, and vision technology.
The initiative will build on PDW’s 90,000-square-foot (8,361-square-meter) facility in Huntsville, Alabama, creating additional manufacturing capacity for the company and local industry partners.
Components for Small Drones
The Pentagon said the effort will focus on Group 1 and Group 2 UAS platforms, reducing reliance on overseas sources for critical components.
Under the US military’s classification system, Group 1 drones weigh under 20 pounds (9 kilograms) and have a service ceiling of 1,200 feet (366 meters), while Group 2 systems have a maximum weight of 55 pounds (25 kilograms) and operate below 3,500 feet (1,067 meters).
Before the funding is finalized, PDW must complete standard financial, legal, and technical requirements.
“Achieving Secretary Hegseth’s mandate for drone dominance requires a secure and resilient industrial base here at home,” said Emil Michael, US Under Secretary of Defense for Research and Engineering.
The project aligns with Washington’s executive order last year to reinforce national defense manufacturing in support of next-generation tactical autonomous systems.
“America’s ability to respond tomorrow depends on the industrial capacity we build today,” said James Slider, CEO of PDW. “This conditional commitment … would support the critical need of strengthening domestic manufacturing and restoring America’s ability to build the capabilities our nation depends on.”
