Unusual Machines to Buy Upgrade Energy in $52 Million Cash-and-Stock Deal
The acquisition would add domestic battery engineering and manufacturing capacity to the drone-component maker.
Unusual Machines (UMAC) agreed to acquire DroneNX LLC, which operates as Upgrade Energy, in a transaction valued at about $52 million, accelerating the drone-component maker’s expansion into domestically produced battery and power systems. The definitive agreement called for a combination of cash and stock, including a performance-based earnout.
The companies didn’t disclose the allocation between cash and shares, an exchange ratio or a closing date. The earnout ties a portion of the consideration to Upgrade Energy’s performance after the transaction. The acquisition would strengthen Unusual Machines' domestic engineering and manufacturing capabilities while broadening its lineup of components for unmanned aircraft.
Battery packs sit at the center of drone endurance and reliability, giving the transaction a direct connection to Unusual Machines’ existing business as a manufacturer of components designed to comply with U.S. defense-procurement requirements. “Batteries are a foundational part of drone power systems and have a huge impact on performance and reliability,” Chief Executive Allan Evans said. “Upgrade Energy adds the best battery and power systems expertise we have worked with.” Evans also said Upgrade Energy’s staff would add technical talent aligned with Unusual Machines’ culture and operating approach.
Upgrade Energy manufactures battery and power-system products for unmanned aerial systems from an 18,500-square-foot facility in Torrance, Calif., where it employs about 30 engineering and production workers. Chief Executive Matthew Barnard said the company was built to address flight-time and reliability challenges with high-performance drone batteries made in the U.S. Joining Unusual Machines would provide the scale and operational support needed to speed development of that technology, he said. Unusual Machines also planned to add a second battery-pack production facility in Orlando, Fla., extending the target’s capabilities into the acquirer’s domestic manufacturing network.
The transaction followed other battery-sector acquisitions aimed at securing production capacity and technical expertise. SES AI agreed in 2025 to buy energy-storage-system provider UZ Energy for about $25.5 million, including a performance-linked adjustment, to add hardware, operating data and sales channels. Enovix separately acquired battery-cell manufacturing assets from SolarEdge in South Korea to expand capacity, simplify its supply chain and serve defense, industrial and consumer-electronics customers.
For Unusual Machines, the forward path centers on integrating Upgrade Energy’s engineers and Torrance operations while building the planned Orlando facility. The combination would give the company internal battery expertise alongside its existing drone-component portfolio, placing domestic power-system design and production within the same organization as the aircraft hardware those systems support.