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