The United States Department of War’s Office of Strategic Capital announced today a conditional loan commitment of up to $820 million to Performance Drone Works to establish high-volume domestic manufacturing capacity for critical drone components.
Together, the OSC financing and additional private capital committed alongside it will support a new high-volume source of domestically manufactured components for use across the broader U.S. drone industrial base. The project is intended to supply components to multiple manufacturers and platforms, representing a significant expansion of domestic production capacity for drone components. These components are intended to support a range of Group 1 and Group 2 unmanned aircraft produced by PDW and other domestic manufacturers. With this strategic financing, OSC will enable the development of production capacity to address critical component bottlenecks facing the broader U.S. unmanned-systems ecosystem.
“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,” said David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg.
James R. Shanahan, Senior Managing Director at OSC, added, “We are squarely focused on identifying and addressing bottlenecks in critical supply chains, including drones and autonomous systems. 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 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.
“Achieving Secretary Hegseth’s mandate for drone dominance requires a secure and resilient industrial base here at home. 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,” said Emil Michael, Under Secretary of War for Research and Engineering.
– DoW
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