The U.S. Department of War's Office of Strategic Capital (OSC) has announced a conditional loan commitment of up to $820 million to Performance Drone Works (PDW) to establish high-volume domestic manufacturing capacity for critical drone components.
This significant financing, combined with additional private capital, is intended to create a new domestic source for components across the broader U.S. drone industrial base. The project aims to supply parts to multiple manufacturers and platforms, substantially expanding production capacity for Group 1 and Group 2 unmanned aircraft and addressing critical component bottlenecks.
David A. Lorch, Director of the Office of Strategic Capital, said that PDW is one of several domestic component producers receiving OSC loan commitments in support of President Trump's Executive Order 14307, "Unleashing American Drone Dominance." He added that expanding domestic production will benefit the entire ecosystem and improve supply-chain resilience. James R. Shanahan, Senior Managing Director at OSC, emphasized their focus on identifying and addressing bottlenecks in critical supply chains for drones and autonomous systems.
Emil Michael, Under Secretary of War for Research and Engineering, stated that achieving Secretary Hegseth's mandate for drone dominance requires a secure and resilient industrial base at home. He noted that the OSC is strengthening the domestic supply chain to ensure American manufacturers can deliver lethal capabilities for warfighters. The conditional loan requires PDW to satisfy customary financial, legal, technical, and other due diligence requirements before reaching financial close.