Drone fleets are accelerating across commercial, defense and city logistics use cases. In Korea, a bold collaboration targets a domestic, NDAA-ready supply chain that could shape global drone operations and the broader drone cell manufacturing landscape.

SES AI Corporation and Top Material have announced a plan to boost Korea-based cell manufacturing capacity for drones and urban air mobility. The collaboration pairs SES AI’s AI-enhanced lithium-metal and lithium-ion batteries with Top Material’s gigafactory-scale engineering and Korea-focused materials sourcing. The aim is to build a robust, secure, and cost-efficient battery supply chain that helps SES AI meet NDAA country-of-origin and supply chain requirements for its drone customers.

The initiative centers on SES AI’s Chungju facility, a site established in 2021 with government support from South Korea and the City of Chungju. That factory has already achieved notable milestones, including the world’s first 100Ah lithium-metal cell for automotive applications in 2021 and a 30Ah lithium-metal cell for UAM applications in 2024. The plan is to expand this manufacturing footprint to support a growing slate of drone and advanced mobility programs, spanning civilian, commercial, and defense-adjacent markets.

According to Marketscreener, the collaboration is currently non-binding and hinges on negotiating and executing a definitive agreement, targeted for the first quarter of 2026. This timing suggests a measured path from announcement to scale, focused on risk management, supplier validation, and alignment with NDAA-origin requirements for global customers.

Drone Cell Manufacturing

What this means for the sector

The Korea-based push highlights a broader shift in the drone industry: the race to secure NDAA-compliant sources of high-energy cells and modules. For drone operators, this matters because it reduces dependency on a single country or supplier and can shorten lead times for critical platforms. For manufacturers, it signals a clearer route to market in North America and allied markets where NDAA-origin rules influence procurement decisions.

Tech and production implications

SES AI’s AI-enhanced approach to lithium-metal and lithium-ion chemistry is central to lifting energy density and power capability without sacrificing safety—the kind of tradeoff that matters when drones scale from surveillance and inspection to heavier, more capable platforms. Top Material brings gigafactory-grade processes and cathode material expertise to the equation, enabling end-to-end control from materials sourcing to finished cells. In practice, this combination could translate into drones with longer flight times, higher payloads, and more reliable performance in demanding environments.

Policy and market context

• NDAA compliance: U.S. policy governs the origin and supply chain of components used in federal and defense-related procurements. The Korea project explicitly notes alignment with NDAA-origin requirements, signaling a longer-term export strategy for SES AI and its customers.
• Supply chain resilience: Diversifying production beyond a single site or country reduces risk from geopolitical tension, tariffs, or disruptions in one region. The Chungju plant and its expansion plan anchor Korea as a regional hub for drone cell manufacturing.
• Industry momentum: The collaboration mirrors a wider push to localize key battery components in Asia, while still serving global demand for drones, UAM, and other mobility applications.

For defense planners and commercial operators, the message is clear: robust, NDAA-compliant supply lines are now a strategic lever in drone programs. The combination of advanced chemistry, scalable manufacturing, and regional sourcing may reshape how quickly drone platforms reach the market and how reliably they can be sustained in service.

FAQs

What is NDAA compliance in this context?

NDAA compliance refers to meeting country-of-origin and supply chain requirements set by the U.S. National Defense Authorization Act for products used in government or defense-related programs. The Korea project emphasizes alignment with these rules to serve U.S. and allied customers.

When could the definitive agreement be signed?

Marketscreener reports the non-binding deal targets a definitive agreement in Q1 2026, after further due diligence and contract negotiations.

Why Korea as a production hub?

Korea already hosts a mature battery ecosystem, strong manufacturing engineering capabilities, and government backing for industrial projects. The Chungju facility provides a tested base to scale cell production for drones and UAM while pursuing NDAA-ready supply chains.

Conclusion

The partnership between SES AI and Top Material signals a deliberate step toward a more resilient, NDAA-aligned drone cell manufacturing ecosystem in Korea. If the definitive agreement proceeds in 2026, the combined tech and scale could hasten a new generation of drones with higher performance and safer, domestically sourced batteries. For the broader industry, the move underscores a trend: national and regional hubs will increasingly host end-to-end battery manufacturing tied to AI and advanced materials, shaping where and how drone technologies are built and deployed.