Military use of drones has increased exponentially in the war in Ukraine and, most recently, in the fighting in the Middle East.

However, modern conflict has shown that nations cannot surge industrial capability after a crisis begins, which could limit the availability of the unmanned systems.

For the United States, that has been troubling particularly since many of the components required to build unmanned and robotic systems remain concentrated in foreign-controlled supply chains.

To help expand domestic production, Huntsville-based Performance Drone Works announced a conditional loan commitment of up to $820 million from the Department of War’s Office of Strategic Capital.

The OSC financing would help expand domestic production of complete systems and the critical technologies and components required to build and sustain them, PDW officials said.

“America’s ability to respond tomorrow depends on the industrial capacity we build today,” said CEO James Slider. “This conditional commitment from the Department of War’s Office of Strategic Capital would support the critical need of strengthening domestic manufacturing and restoring America’s ability to build the capabilities our nation depends on.

“We are proud to take on that responsibility, and proud to protect the operators who defend our nation and its allies by putting reliable capability in their hands when and where the mission demands it.”

The funding will also help PDW reduce the nation’s reliance on foreign-controlled supply chains, strengthening domestic manufacturing capability.

The ability to rapidly design, build, test, and deliver mission-capable systems at scale begins with manufacturing.

To that end, PDW has engineering, flight test, systems integration, production, and fulfillment under one roof to build scaled, integrated manufacturing operations for unmanned systems. The company’s Drone Factory 01 is a 90,000-square-foot facility on Diamond Drive in Cummings Research Park.

Company officials said the financing would help PDW expand domestic production of propulsion, power and control, vision systems and other technologies for its own aircraft and other U.S. manufacturers.

The funding represents a significant federal commitment to the advanced manufacturing work underway in Huntsville.

The OSC financing and additional private capital is intended to:

Establish domestic production of critical drone and robotics components currently dependent on foreign-controlled supply chains, including propulsion, power and control, vision systems and other enabling technologies;
Supply trusted, American-made components for PDW-produced aircraft and other domestic manufacturers, bolstering the broader U.S. drone industrial base; and
Support urgent defense requirements today while establishing enduring manufacturing capability for future public safety, industrial, and commercial applications.

The OSC’s financing reflects a broader national effort to restore America’s ability to build the critical technologies that will define the future of American security and industrial competitiveness, officials said.

The conditional loan commitment specifies customary additional steps the company must take to proceed toward financial close on the loan, including fulfilling financial, legal, technical, due diligence, and other requirements.

“For more than a decade, the United States has been dependent on foreign technology and has lacked a domestic drone component ecosystem,” said co-founder and Executive Chairman Matt Higgins. “This financing would allow us to build the components necessary for a thriving, sovereign dual-use drone industry and help to secure our nation’s industrial future.”