Arizona Startup Shifts Focus from Electric Vehicles to Defense Amid Rising Drone Demand
Amidst evolving global conflicts and an increasing demand for advanced drone technology, an Arizona-based startup is pivoting its focus from electric vehicles to the defense sector. Sion Power, led by former General Motors executive Pamela Fletcher, is gearing up to commercialize high-energy lithium-metal battery cells specifically for drones and other defense applications.
In an exclusive interview with CNBC, Fletcher stated, “We’re targeting to commercialize this technology. We had hoped, and thought, that would be in automotive, and I think that possibility still exists, but the faster path, and frankly, a big need, is out there in this defense space.” This strategic shift comes as the Trump administration intensifies its focus on U.S.-made drones due to ongoing military engagements such as the war in Iran.
Previously, Sion Power concentrated on developing batteries for all-electric vehicles, but with the slower-than-anticipated adoption of EVs and changes in federal incentives, the company is now looking at defense as a viable market. Their “Licerion HE” lithium-metal battery cells are designed to provide maximum energy in a lightweight package, making them ideal for use in drones and other autonomous systems.
Fletcher emphasized the benefits of this technology, noting, “Lithium-metal technology, which is what we developed, has high gravimetric energy, which means it’s a lot of energy in a lightweight pack. It works really well for things that fly.” These cells are engineered to deliver an energy density exceeding 500 watt-hours per kilogram, significantly higher than today’s most advanced lithium-ion batteries.
Sion Power operates out of a 110,000-square-foot facility in Tucson, Arizona, where it is converting its production lines from automotive to defense applications. The company does not intend to supply directly to the U.S. government but aims to collaborate with certified defense contractors.
Experts, including Sam Abuelsamid of Telemetry, see potential for lithium-metal cells across multiple sectors due to their improved energy density and cost-effectiveness compared to existing technologies. “There’s no reason why they wouldn’t be just as effective in smaller objects, especially something that flies, like a drone,” he commented.
Sion Power has attracted over $200 million in investment from notable entities, including LG Energy Solution and former Google CEO Eric Schmidt’s family office, Hillspire. As the company looks to expand, it plans to seek additional funding to support its anticipated product launch and scale-up in late 2026 and 2027.
Founded in 1989 as a spin-off from Brookhaven National Laboratory, Sion Power continues to innovate in energy storage, adapting to the changing demands of both the automotive and defense industries. For more information about the company’s history and developments, visit their official website.
Original Story at www.cnbc.com