Pentagon grants Neros $450 million loan for drone production — Defense News

In the United States, the Department of Defense has provided California-based drone manufacturer Neros Technologies with a conditional $450 million loan to expand domestic production of small-drone components. The company also plans to invest another $165 million in the project, bringing total investment to $615 million, Defense News reports.

Component production in the United States

The loan was provided by the Pentagon’s Office of Strategic Capital (OSC). According to Neros head of growth Ross Pederson, before receiving the funding, the company did not manufacture its own components, instead ordering them from other producers and then assembling drones.

Neros has already expanded its own motor production and plans to soon begin manufacturing surface-mount components used to equip printed circuit boards. Pederson said that by the end of next year, parts manufactured at the same facility where the drones are assembled should account for about 80% of a drone’s value.

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Participation in the Pentagon program

Neros is one of the leaders in the Drone Dominance Program, a Pentagon competition to find a small combat drone offering the best balance of quality and cost. OSC Director David Lorch said the company has already demonstrated its ability to design, manufacture and deliver small unmanned aerial systems.

Neros did not disclose the loan terms, including the interest rate and repayment schedule. Pederson clarified that debt forgiveness is not предусмотрено, while the Department of Defense’s goals are tied to producing components in the United States and making them available to a broader market. He also noted that a long-standing ban on purchasing drones with electronic components from certain foreign countries, including China, is important for military procurement.