KULR Technology Group announced a new defense contract for its KULR ONE Air batteries, with initial orders of nearly $1 million and a total potential value exceeding $5 million, to be delivered before the end of 2026.
The contract ties KULR to the U.S. Department of War’s $1.1 billion Drone Dominance initiative and positions the company in a defense drone market projected to grow from $120.5 billion in 2026 to $6.86 trillion by 2034, a CAGR of 65.7%.
While the initial $1 million order is below KULR’s 2024 revenue of $10.74 million, the full $5 million+ order would represent roughly 30% of the company’s 2025 revenue of $16.17 million and exceeds its 2024 revenue, providing a significant new revenue stream amid a 2025 net loss of $61.9 million and a 1% gross margin.
The order confirms KULR’s focus on high‑margin, mission‑critical battery solutions for defense and aerospace, and it is the first new customer contract reported in the past 30 days, underscoring the company’s ability to secure large, high‑profile deals.
CEO Michael Mo said, "This order marks an exciting milestone in KULR's expansion into the US domestic drone and UAV market. With our expanding customer pipeline and a global market projected to grow at more than 65% annually through 2034, I believe KULR ONE Air is entering one of the most compelling growth markets in our industry."
The contract’s delivery schedule and alignment with the Drone Dominance initiative suggest that KULR could scale production and improve margins as it meets the growing demand for lightweight, high‑performance batteries in defense UAVs, potentially accelerating the company’s path to profitability.
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