Defense Dept. announces loan commitment for expanded drone component manufacturing

The U.S. Department of War’s Office of Strategic Capital announced the condition loan commitment of up to $820 million to establish high-volume domestic manufacturing capacity for drone components.

Performance Drone Works was given the loan commitment in order to expand domestic manufacturing of the next generation of drones, robotics and autonomous systems, as well as to reduce America’s reliance on foreign-controlled supply chains. Officials said the loan would help the company design, build, test and deliver systems at scale, and that PDW brings engineering, flight test, systems integrations, production and fulfillment together under one roof at its Huntsville, Ala., drone factory.

“PDW will be one of several domestic component producers receiving OSC loan commitments in support of President Trump’s Executive Order 14307, ‘Unleashing American Drone Dominance.’ Expanding domestic component production will benefit manufacturers throughout the ecosystem and improve supply-chain resilience,” David A. Lorch, director of the Office of Strategic Capital, said.

The conditional loan commitment between OSC and PDW specifies customary additional steps the company must take to proceed toward financial close, including satisfying financial, legal, technical, and other due diligence requirements, the agency and company said.

“America’s ability to respond tomorrow depends on the industrial capacity we build today,” James Slider, CEO of PDW. “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.”