US drone manufacturer Neros has been offered a conditional Pentagon loan commitment of up to $450 million to expand domestic production, with plans to reach an annual output of one million drones by 2028.
The commitment was announced by the Department of Defense’s Office of Strategic Capital (OSC), but the company must first meet financial, legal, and technical requirements before the funding can be disbursed.
Neros said it would contribute an additional $165 million in equity, bringing the planned investment to $615 million.
The project will support production of drones for military and civilian applications, as well as ground control systems.
It also includes key components such as motors, radios, flight electronics, sensors, and batteries.
Expanding Domestic Production
Neros plans to expand manufacturing at its facility in Torrance, California, where it will produce complete aircraft and a larger share of the components used to build them.
The aim is to reduce reliance on foreign suppliers and give the company greater control over its supply chain.
Neros also plans to supply components to other US and allied drone manufacturers, in addition to using them in its own production.
The OSC said these components would meet sourcing requirements established under the National Defense Authorization Act.
‘Drone Dominance’
The proposed financing supports Washington’s broader effort to expand domestic drone production under its Unleashing American Drone Dominance executive order.
Signed by US President Donald Trump last year, the order directed federal agencies to prioritize US-made drones and strengthen domestic control over their supply chains.
For the military, it called for expanding the Pentagon’s Blue UAS list of approved drones and components, with updates issued monthly.
The order also directed officials to ease access to airspace for drone training and identify military programs where drones could replace existing equipment to lower costs or improve combat effectiveness.
