KULR Technology Group and Texas‑based Hylio announced a joint development collaboration to design, prototype, qualify, and manufacture National Defense Authorization Act‑compliant battery systems for Hylio’s unmanned agricultural drones, with production slated for Texas.
The partnership will leverage KULR’s NASA‑validated carbon‑fiber thermal interface materials and phase‑change heat‑sink technology, while Hylio contributes its expertise in advanced unmanned aerial systems. Both companies plan to explore multiple battery chemistries, pack configurations, and manufacturing approaches to support current and next‑generation Hylio platforms across commercial agriculture, public‑sector programs, and defense‑oriented markets.
The agricultural drone market is projected to grow from $4.08 billion in 2026 to $8.65 billion by 2032, a compound annual growth rate of 13.21%. The collaboration positions both companies to capture a share of this expanding market while meeting growing federal procurement standards for NDAA compliance.
Strategically, the partnership strengthens U.S. supply‑chain integrity and aligns with the National Defense Authorization Act’s restrictions on foreign components, giving both companies a competitive advantage in defense‑adjacent and public‑sector contracts. Hylio’s “Made in America” positioning and KULR’s space‑proven thermal management technology provide a differentiated product offering.
KULR’s recent financials show strong liquidity, with a current ratio of 4.12 and a quick ratio of 4, but the company has reported negative operating and net margins of –177.53% and –133.46%, respectively. The partnership may help improve profitability by leveraging KULR’s technology in a high‑margin, high‑growth segment, though the company will need to manage cost pressures and scale production.
CEO Michael Mo said, "Domestic, NDAA‑compliant energy storage is becoming a foundational requirement for advanced unmanned and defense‑adjacent systems. Our joint development collaboration with Hylio reflects a shared commitment to U.S.-based design and manufacturing and positions both companies to support customers seeking high‑reliability battery solutions built in Texas." Hylio CEO Arthur Erickson added, "Partnering with KULR on domestically engineered and manufactured battery systems strengthens our supply chain, enhances performance capabilities, and supports the growing demand for NDAA‑compliant UAS solutions."
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