US firm begins making lithium-ion batteries for defense that work in extreme cold

South 8 Technologies has started operating a semi-automated battery cell manufacturing line at its facility in San Diego, California. The line will make cylindrical cells for defense and specialty applications that need reliable power in extreme cold.

The expansion supports production of South 8’s ARCTIC AE35 18650 cell. The company says the line will support 5 MWh of annual production in 2027 as it scales capacity for customers including 3ME Technology and Galvion.

The cell uses South 8’s LiGas liquefied gas electrolyte, which enables it to charge and discharge across a stated temperature range of −76°F (−60°C) to 140°F (60°C).

Building cells for cold-weather equipment

Battery performance becomes a practical concern for equipment expected to work in freezing conditions. South 8 is positioning the AE35 for customers that build battery packs and platforms used in unmanned systems, communications equipment, remote sensing, and soldier power.

The operational line gives the company a way to increase production of the cells while serving defense and specialty markets.

South 8 identified 3ME Technology and Galvion as defense customers commercializing battery solutions that use its LiGas electrolyte.

The company said the new line creates a path from cell qualification to production as it scales capacity through 2027. South 8 has not stated that the newly operational line is producing at that rate today.

Domestic production and sourcing

South 8 will produce both the AE35 cells and its proprietary electrolyte at its San Diego facility. Alongside the line’s launch, the company said it has established supplier agreements for key cell materials and components.

Those agreements are intended to support a supply chain that avoids reliance on foreign entities of concern. For defense customers, the location of cell production and the sourcing of materials can matter alongside performance in the field.

South 8 said its supply chain was selected with emerging sourcing rules in mind. It described the domestic line as a pathway toward meeting applicable National Defense Authorization Act requirements once those rules are finalized.

The company did not claim that the cells have already been certified as compliant with finalized rules.

Scaling for defense customers

“Customers need battery cells that perform in extreme environments while also reducing supply chain risk,” said Rusty Heffner, South 8’s vice president of strategy.

“South 8 is scaling production of the AE35 cell to address both needs. We provide the cold weather performance our customers require while building cells domestically with a supply chain that was selected to comply with the NDAA Section 842 rules,” he added.

“We enhance the capability of our customers’ products and give them confidence that they will have a reliable domestic source of battery cells that meets emerging DOW regulations,” Heffener continued.

The launch marks an operational manufacturing step for South 8, while its planned 2027 output remains ahead. Its customers can now work toward using domestically made AE35 cells in equipment designed for demanding cold-weather environments.

Source: https://interestingengineering.com/energy/us-battery-maker-5-mwh-cell-line