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Capital · Drones

Badland Batteries' Navy-backed drone cell plant opens after its 2025 production goal passed

The Fargo, N.D., plant will make lithium-ion cells for unmanned systems. Its cell timetable has moved since 2024.

Badland Batteries, a subsidiary of drone battery maker Packet Digital, opened its battery cell plant in Fargo, N.D., on Oct. 8.1, 4–5 The facility will manufacture lithium-ion cells, from electrode manufacturing through formation and aging, and Badland will be able to assemble packs at its facility a mile away.1, 6 The company says it has the capacity to increase production based on industry growth.1

Badland's Fargo cell schedule moved before the Oct. 8 plant opening

Company-stated cell goals and targets by date stated, then the opening; Fargo, N.D., drone battery cell plant

End of 2025April 2024 goal: make battery cells for customers
2026April 2026: plant will begin production of U.S.-made battery cells
OctoberSept. 23, 2026: set to begin production
Oct. 8Badland celebrated the plant's opening

The Oct. 8 releases from Badland and Sen. John Hoeven say the plant will manufacture cells; neither says production has begun or names a customer.

Badland Batteries releases, April 18, 2024, and April 8, Sept. 23 and Oct. 8, 2026; Sen. John Hoeven release, Oct. 8, 2026.

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Badland called the opening the completion of the building.1 When Packet Digital announced the factory in April 2024, it aimed to make cells for customers by the end of 2025.5 In April 2026, Packet Digital said cell production would begin that year; on Sept. 23, Badland put the start in October.2, 4 The company's Oct. 8 release says the plant will manufacture cells, without saying production has begun or naming a customer.1

North Dakota's Clean Sustainable Energy Authority made a $17.4 million award toward the plant.5 Chief Executive Terri Zimmerman said the company invested nearly $100 million.1–2

Navy money runs through the project. After a Navy contract phase covering plant design and construction, the company announced in May that it was awarded $9.8 million for Phase 3.3 In April it announced a $27 million Small Business Innovation Research Phase III contract from the Naval Air Warfare Center Aircraft Division to scale cell manufacturing.4

Phase 3 focuses on scaling volumes, qualifying production equipment and ramping throughput "to meet Navy requirements."3 Customer deliveries of Fargo-made cells, and progress toward the 2028 maximum-capacity goal set in 2024, will show whether the opening becomes output.5

Correction, November 4, 2026: An earlier version of this brief described the plant as an 80,000-square-foot pouch-cell facility, reported the company's statements that it could produce more than 15,000 cells a day and that more than 90% of the U.S. drone battery supply chain relies on Chinese-made cells, and cited Sen. John Hoeven's figure of $52.6 million in Navy funding. The company's current announcements do not include those details and Sen. Hoeven's release is no longer available, so we removed them.

Sources (6)
  1. Badland Batteries: Badland Batteries Cuts Ribbon at Battery Cell Manufacturing Facility (Oct. 8, 2026) www.badlandbatteries.com
  2. Badland Batteries: House Majority Leader Steve Scalise and Rep. Julie Fedorchak tour battery cell manufacturing facility (Sept. 23, 2026) www.badlandbatteries.com
  3. Badland Batteries: Packet Digital Awarded $9.8 million U.S. Navy Contract to Scale Battery Cell Production (May 5, 2026) www.badlandbatteries.com
  4. Badland Batteries: Packet Digital awarded $27 million Phase III SBIR contract to bolster domestic battery manufacturing (April 8, 2026) www.badlandbatteries.com
  5. Badland Batteries: Packet Digital to build battery cell factory in North Dakota (April 18, 2024) www.badlandbatteries.com
  6. Badland Batteries: Battery Cell Plant www.badlandbatteries.com
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Contracts · Autonomy

Army lab awards Havoc an SBIR Phase III for autonomous air and ground resupply

Havoc says the contract builds on its work in the Army's xTechOverwatch competition. Its announcement didn't give the contract's value, ceiling or length.

The Army Applications Laboratory has awarded Havoc a Small Business Innovation Research (SBIR) Phase III contract, the Providence, R.I., collaborative autonomy software company announced Monday. The award will fund continued development of Havoc's software for logistics resupply across multiple hardware platforms. Under the contract, Havoc says, it will expand its multi-domain capabilities to orchestrate resupply deliveries to soldiers by air and ground.1

The contract builds on Havoc's work under xTech Overwatch

Small Business Innovation Research (SBIR) Phase III contract from the Army Applications Laboratory (AAL)

xTech Overwatch's Pegasus Charge III exerciseend-to-end autonomous resupply missionactual

Rune Technologies successfully integrated TyrOS with Havoc's autonomous drones

Army Applications Laboratoryair and ground platformsplanned

Havoc will expand its multi-domain capabilities to orchestrate the delivery of critical resupply to Soldiers via air and ground platforms

Source: Havoc releases, Sept. 3, 2026 (with Rune Technologies) and Oct. 12, 2026. Data as of Oct. 12, 2026.

Sources
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Havoc's chief executive, Paul Lwin, said the Phase III designation means any federal agency, "not just the Department of War, can now bring Havoc on board through a streamlined, non-competitive path."1 Phase III is the SBIR program's commercialization stage, where a company can market what it developed in Phase II to government or commercial buyers.2 Havoc's backers include defense contractors: the company raised a $100 million Series A in May, with SAIC joining existing investors including Lockheed Martin.4

The Army lists Havoc as a winner of xTechOverwatch, a competition that sought concepts for autonomous aircraft, ground vehicles and sensor networks from small businesses.2 In August, during the competition's Pegasus Charge III exercise at Fort Hood, Texas, Havoc and Rune Technologies completed an end-to-end autonomous resupply mission with Havoc's drones and Rune's TyrOS software, the companies said.3 Havoc says the expanded air and ground work responds to a need identified by its 1st Cavalry Division customer at Overwatch/Pegasus Charge.1

A Phase III award to Havoc from a buyer other than the Army Applications Laboratory would show the path Lwin describes in use.1

Sources (4)
  1. Havoc: Havoc Awarded SBIR Phase III Contract by Army Applications Laboratory for Multi-Domain Mission Collaborative Autonomy (Oct. 12, 2026) www.prnewswire.com
  2. U.S. Army xTech: xTechOverwatch competition page www.xtech.army.mil
  3. Havoc: Havoc and Rune Technologies Announce Integration to Deliver Autonomous Logistics at the Edge (Sept. 3, 2026) www.havocai.com
  4. Havoc: Havoc Raises $100M Series A to Power the Future of All-Domain Collaborative Autonomy (May 12, 2026) www.havocai.com

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Capital · Space ISR

Kapta Space raises $24 million, saying it secured classified moving target indication contracts

Washington Harbour Partners led the Series A. Kapta's announcement named no buyer or value for the contracts.

Kapta Space, a Seattle developer of spaceborne radar payloads, announced the $24 million round on Friday, Oct. 9, with Bison Ventures as co-lead. Kapta says the money will help it scale production to support multiple classified moving target indication (MTI) contracts it secured earlier this year. The round brings its total funding to $30 million.1

Kapta says the funding will help it scale production to support multiple classified MTI contracts

Kapta Space announced a $24 million Series A led by Washington Harbour Partners and co-led by Bison Ventures

funding$24 million Series A financing
Kaptadeveloper of next-generation spaceborne radar payloads
Kaptadeveloper of next-generation spaceborne radar payloads
multiple classified moving target indication (MTI) contractsthe company secured earlier this year

After the Series A, Kapta will focus on qualifying its payload for flight, expanding manufacturing capacity and preparing for its first orbital demonstration

Source: Kapta Space release via PR Newswire, Oct. 9, 2026. Data as of Oct. 10, 2026.

Sources
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The technology it wants to produce has a public research trail. In July 2023, DARPA funded a $1.7 million Direct to Phase II Small Business Innovation Research contract for a steerable X-band metasurface antenna.2–3 The award's abstract set out to develop spaceborne radar imaging and MTI sensor technology.2 USAspending lists the work, which ended in July 2025, as a "Space Metamaterial Electronically Scanned Array," matching the name of Kapta's MESA architecture.1, 3

Conventional radar payloads, Kapta says, have been too costly and complex to deploy across large satellite constellations. MESA is designed to deliver advanced radar performance at significantly lower cost, power and manufacturing complexity than traditional active electronically scanned arrays, the company says.1

Washington Harbour is a Washington, D.C., private investment firm whose investments run from growth equity to control buyouts. Mina Faltas, its founder and chief executive, said the firm believes MESA's combination of performance, cost and scalability will make Kapta "a foundational supplier to the next generation of U.S. and allied space architectures."1

Kapta wants to scale production for contracts it says it has secured while its payload still has to be qualified for flight. The milestone to watch is its first orbital demonstration, which Kapta is preparing for but didn't date in the announcement.1

Sources (3)
  1. Kapta Space: Kapta Space Raises $24M Series A, Secures Multiple Classified MTI Contracts (Oct. 9, 2026) www.prnewswire.com
  2. SBIR.gov: Steerable X-Band Metasurface Antenna for Spaceborne Radar, Kapta Space Corp. (2023) www.sbir.gov
  3. USAspending: Contract FA237723CB002, Space Metamaterial Electronically Scanned Array api.usaspending.gov