A Huntsville-based defense technology company is poised to significantly expand domestic drone manufacturing after receiving a conditional federal loan commitment worth up to $820 million from the U.S. Department of War’s Office of Strategic Capital.
The financing for Performance Drone Works (PDW) would help establish high-volume U.S. production of critical drone components, strengthening domestic supply chains for unmanned aircraft while reinforcing Huntsville’s role as a growing hub for defense manufacturing.
The Office of Strategic Capital announced Friday that the conditional commitment, combined with additional private investment, is intended to create new manufacturing capacity for propulsion systems, power and control technologies, vision systems and other key components used in military drones and autonomous systems.
The components would support PDW’s aircraft as well as products manufactured by other U.S. drone companies.
PDW operates Drone Factory 01, a 90,000-square-foot facility in Huntsville that houses engineering, flight testing, systems integration, manufacturing and fulfillment operations under one roof.
“America’s ability to respond tomorrow depends on the industrial capacity we build today,” PDW CEO James Slider said. “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.”
Federal officials said the investment aligns with President Donald Trump’s Executive Order 14307, “Unleashing American Drone Dominance,” which seeks to strengthen the nation’s domestic drone manufacturing capabilities.
“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,’” said David A. Lorch, director of the Office of Strategic Capital and senior advisor to Deputy Secretary of War Steve Feinberg. “Expanding domestic component production will benefit manufacturers throughout the ecosystem and improve supply-chain resilience.”
James R. Shanahan, senior managing director at the Office of Strategic Capital, said the agency is focused on addressing weak points in the nation’s defense industrial base.
“We are squarely focused on identifying and addressing bottlenecks in critical supply chains, including drones and autonomous systems,” Shanahan said. “OSC’s transaction with PDW, along with private capital crowded in alongside it, will support the construction of significant new manufacturing capacity to address vulnerabilities across the drone supply chain.”
The planned expansion would reduce reliance on foreign-controlled supply chains by producing critical technologies domestically, including propulsion systems, flight controls and vision technologies used in drones and robotic systems.
“For more than a decade, the United States has been dependent on foreign technology and has lacked a domestic drone component ecosystem,” said Matt Higgins, PDW co-founder and executive chairman. “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.”
The Department of War said expanding domestic production capacity is intended to benefit the broader U.S. drone industry by supplying components to multiple manufacturers across Group 1 and Group 2 unmanned aircraft platforms.
“Achieving Secretary Hegseth’s mandate for drone dominance requires a secure and resilient industrial base here at home,” said Emil Michael, under secretary of War for Research and Engineering. “The Office of Strategic Capital is strengthening the domestic supply chain for critical drone components to ensure American manufacturers can deliver the lethal capabilities that our warfighters need.”
The loan commitment remains conditional. Before financing can be finalized, PDW must satisfy financial, legal, technical and other due diligence requirements required by the Office of Strategic Capital.
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