Collaboration strengthens U.S. manufacturing and targets fast-growing agricultural and defense drone markets
KULR Technology (KULR), a leader in advanced energy storage platforms, has announced a Joint Development Collaboration with Hylio, Inc., a Texas-based manufacturer of unmanned agricultural drones. The partnership aims to design, prototype, qualify, and domestically manufacture NDAA-compliant lithium battery systems for integration into Hylio’s unmanned aerial systems (UAS), reinforcing both companies’ commitment to U.S.-based manufacturing and secure supply chains.
The collaboration will focus on developing high-performance battery architectures tailored for mission-critical agricultural, government, and defense-adjacent applications. Engineering, integration, and manufacturing efforts are expected to take place in Texas, supporting domestic production while meeting strict federal compliance standards under the National Defense Authorization Act (NDAA).
The timing of the partnership aligns with strong projected growth in the agricultural drone sector. According to Research and Markets, the global agricultural drone market is expected to expand from $4.08 billion in 2026 to $8.65 billion by 2032, representing a compound annual growth rate (CAGR) of 13.21%. This growth is driven by increasing demand for automation in agriculture, as well as rising regulatory requirements for trusted, domestically produced components in government and critical infrastructure applications.
KULR’s advanced battery systems are designed to enable safe, certifiable deployment of ultra-high-power lithium batteries across industries, including space, defense, AI data centers, and telecommunications. By partnering with Hylio, KULR is expanding its reach into the rapidly growing drone market while reinforcing its broader strategy of delivering compliant energy solutions for regulated environments.
KULR CEO Michael Mo emphasized that domestic energy storage is becoming essential for advanced unmanned and defense-related systems. Hylio CEO Arthur Erickson added that the partnership strengthens the company’s supply chain and enhances drone performance for both commercial farmers and government customers.
The collaboration will evaluate multiple battery chemistries and manufacturing approaches, positioning both companies to support next-generation drone platforms. As demand for secure and high-performance energy solutions continues to rise, this partnership represents a strategic step forward in strengthening America’s domestic drone and energy technology ecosystem.
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