Neros gets $450M Pentagon loan to cut reliance on Chinese drone parts – The Defence Blog

Neros gets $450M Pentagon loan to cut reliance on Chinese drone parts  The Defence Blog

The Pentagon's Office of Strategic Capital has agreed to lend up to $450 million to Neros, the California maker of the Archer attack drone, to build drones and their key parts in the United States, the Department of War announced on Nov. 2. Neros said it will put $165 million of its own equity into the project, bringing the total to $615 million. The money will expand production at the company's factory in Torrance, California, where it plans to build complete drones and ground control stations as well as motors, flight controllers, radios, thermal sensors and batteries. Neros still has to meet financial, legal, technical and due diligence conditions before the money is released, and neither side disclosed the loan's interest rate, term or schedule.

The Office of Strategic Capital, or OSC, is a Pentagon lending office set up to finance companies in industries the military depends on. It said the goal is to reduce American drone makers' reliance on foreign-made components and to supply parts that comply with U.S. defense procurement law to other U.S. and allied manufacturers as well as to Neros itself. "Neros has already demonstrated an ability to design, manufacture, and deliver exceptional small unmanned aircraft systems," said David A. Lorch, director of the Office of Strategic Capital. "OSC's investment will turbocharge Neros' ability to manufacture