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KULR and Hylio Announce Strategic Collaboration to Produce Texas-Manufactured Battery Systems for U.S.-Built Unmanned Agricultural Drones

(Moderate)
(Positive)
Tags
partnership

KULR (NYSE American: KULR) entered a Joint Development Collaboration with Hylio to design, prototype, qualify, and domestically manufacture NDAA-compliant battery systems in Texas for integration into Hylio unmanned agricultural drones. The collaboration targets high-performance, mission-critical energy storage for government, defense-adjacent, and commercial agricultural UAS.

The companies expect engineering, integration, and manufacturing activities to be centered in Texas and will evaluate multiple chemistries and pack configurations. A market report projects agricultural drone revenue growing from $4.08B in 2026 to $8.65B by 2032 (CAGR 13.21%).

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Positive

  • Texas-based NDAA manufacturing for battery systems to support UAS integration
  • Targets government and defense-adjacent customers with certifiable, trusted energy storage
  • Large market tailwind: agricultural drone market projected to reach $8.65B by 2032 (CAGR 13.21%)

Negative

  • No contract value, production volumes, or commercial timelines disclosed in the announcement

News Market Reaction – KULR

+4.20%
7 alerts
+4.20% Session close to close
+3.3% Peak Tracked
-6.0% Trough Tracked
$142.53M Market Cap
0.3x Rel. Volume

In the Feb 18 session, KULR gained 4.20%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.3% during that session. Argus tracked a trough of -6.0% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights KULR’s strategy to pair U.S.-based manufacturing with NDAA-compliant ba...
Analysis

This announcement highlights KULR’s strategy to pair U.S.-based manufacturing with NDAA-compliant battery systems for unmanned agricultural drones, targeting a global market projected to reach $8.65 billion by 2032 at a 13.21% CAGR. It extends prior partnership activity in UAS and mission-critical applications while reinforcing a Texas manufacturing hub. Investors may watch for concrete orders, qualification milestones, and how this collaboration complements earlier Caban and AI data-center initiatives.

Key Figures

Global agricultural drone market 2026: $4.08 billion Global agricultural drone market 2032: $8.65 billion Market CAGR: 13.21%
3 metrics
Global agricultural drone market 2026 $4.08 billion Market size projection for 2026
Global agricultural drone market 2032 $8.65 billion Market size projection for 2032
Market CAGR 13.21% Projected 2026–2032 compound annual growth rate

Previous Partnership Reports

5 past events · Latest: Oct 09 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Oct 09 Bitcoin hosting deal Positive +4.2% Hosting partnership for 3.3 MW Bitcoin mining under lease structure.
Aug 19 UAS battery launch Positive -2.1% Partnerships to launch KULR ONE Air battery line for UAS platforms.
Apr 24 Space battery pact Positive +6.5% Strategic partnership to develop 500Wh space-grade KULR ONE battery pack.
Feb 13 Worksport partnership Positive +0.9% Joint work on COR battery system and U.S. manufacturing expansion.
Oct 02 Licensing agreement Positive +12.5% Licensing deal for Xero Vibe technology with guaranteed fee and royalties.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Partnership and collaboration news has generally led to positive price reactions, though there has been at least one negative response, indicating mostly supportive but not uniformly bullish impacts.

Recent Company History

Recent history shows KULR using strategic agreements to expand into new end markets and U.S. manufacturing. Prior partnerships spanning Bitcoin hosting, UAS batteries, space missions, and licensing (e.g., Project Sophie, KULR ONE Air, AstroForge) all targeted growing niches and technology leverage. Today’s Texas-based collaboration with Hylio for NDAA-compliant UAS batteries continues this pattern of partnering to penetrate regulated, mission-critical applications and reinforce domestic production.

Key Terms

NDAA-compliant, National Defense Authorization Act, unmanned aerial systems (UAS), UAS, +1 more
5 terms
NDAA-compliant regulatory
"design, prototype, qualify, and domestically manufacture NDAA-compliant (National Defense Authorization Act) battery systems"
NDAA-compliant means that a product, supplier, or company meets the rules in the U.S. National Defense Authorization Act that bar certain foreign technologies and require specific security practices. For investors, compliance matters because it determines whether a business can sell to the U.S. government, avoid fines or bans, and reduce supply‑chain or reputational risk—similar to passing a background check that lets you bid on a sensitive contract.
National Defense Authorization Act regulatory
"NDAA-compliant (National Defense Authorization Act) battery systems in Texas"
A national defense authorization act is an annual law that sets the government’s spending limits, policies and rules for military programs and related national security activities. Think of it as the yearly budget and rulebook for defense: it determines who gets contracts, what weapons and technologies are funded, and which activities are allowed or restricted. Investors care because it shapes revenue prospects, regulatory risks and market demand for defense suppliers, technology firms and companies tied to military spending.
unmanned aerial systems (UAS) technical
"battery systems in Texas for integration into Hylio’s unmanned aerial systems (UAS) platforms"
Unmanned aerial systems (UAS) are drones plus the ground controllers, communications links, sensors and software that let them fly and perform tasks without a pilot onboard — think of a radio‑controlled aircraft teamed with a mobile command center. They matter to investors because UAS open new markets and revenue streams across delivery, agriculture, mapping, inspection and defense, while their value and risks hinge on regulation, safety, and technological reliability.
UAS technical
"UAS platforms. The companies intend to focus on high-performance"
UAS stands for Unmanned Aircraft System, the complete setup that lets a remotely piloted aircraft (commonly called a drone) fly safely — including the aircraft itself, the ground controller, communications links and supporting equipment. Investors watch UAS because rules, technology and demand for tasks like surveying, delivery or aerial inspection directly affect companies’ sales and regulatory costs; think of it as a vehicle plus its keys, radio and support crew that together determine whether it can operate profitably.
compound annual growth rate (CAGR) financial
"to $8.65 billion by 2032, representing a compound annual growth rate (CAGR) of 13.21%"
Compound annual growth rate (CAGR) shows how much an investment grows, on average, each year over a certain period. It’s like measuring how fast a plant grows each year, smoothing out the ups and downs to see the overall growth trend. Investors use CAGR to compare different investments and see which one has the best long-term performance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Feb. 18, 2026 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), an energy-systems platform company that enables the safe, certifiable deployment of ultra-high-power lithium battery systems for space and defense programs, hyperscale AI data centers, and telecom infrastructure OEMs, today announced it has entered into a Joint Development Collaboration with Hylio, Inc. (“Hylio”), a Texas-based designer and manufacturer of advanced unmanned agricultural drones.                                       

The collaboration aims to design, prototype, qualify, and domestically manufacture NDAA-compliant (National Defense Authorization Act) battery systems in Texas for integration into Hylio’s unmanned aerial systems (UAS) platforms. The companies intend to focus on high-performance, mission-critical battery architectures tailored to Hylio’s agricultural and defense-adjacent applications, with an emphasis on secure, U.S.-based supply chains.

According to a recent report by Research and Markets, the global agricultural drone market is projected to grow from $4.08 billion in 2026 to $8.65 billion by 2032, representing a compound annual growth rate (CAGR) of 13.21%. KULR believes that increasing regulatory scrutiny and federal procurement standards are accelerating demand for domestically manufactured NDAA-compliant components across commercial and public-sector UAS deployments.

Under the collaboration, KULR expects that the engineering, integration, and manufacturing activities will be centered in Texas. The jointly developed products are expected to support customers requiring trusted, certifiable energy storage solutions for government, defense, and critical-infrastructure use cases, while also enhancing performance and reliability across commercial agricultural operations.

This collaboration aligns with KULR’s broader strategy to expand its U.S. manufacturing footprint and deliver compliant battery platforms for regulated and mission-critical environments where safety, certification, and supply-chain integrity are paramount. For Hylio, the collaboration reinforces its commitment to American-made UAS platforms designed to meet evolving federal and operational requirements.

“Domestic, NDAA-compliant energy storage is becoming a foundational requirement for advanced unmanned and defense-adjacent systems,” said Michael Mo, Chief Executive Officer of KULR Technology Group. “Our joint development collaboration with Hylio reflects a shared commitment to U.S.-based design and manufacturing and positions both companies to support customers seeking high-reliability battery solutions built in Texas.”

“We are focused on delivering high-performance, American-made drone platforms to farmers and government customers alike,” said Arthur Erickson, Chief Executive Officer of Hylio. “Partnering with KULR on domestically engineered and manufactured battery systems strengthens our supply chain, enhances performance capabilities, and supports the growing demand for NDAA-compliant UAS solutions.”

The parties expect to evaluate multiple battery chemistries, pack configurations, and manufacturing approaches under the agreement, with the objective of supporting current and next-generation Hylio platforms across commercial agriculture, public-sector programs, and defense-oriented applications.

About KULR Technology Group, Inc.
KULR Technology Group, Inc. (NYSE American: KULR) is an energy-systems platform company delivering certifiable battery safety, vibration-mitigation, and thermal control solutions that enable ultra-high-power lithium-ion systems and sensitive electronics to operate reliably across space and defense missions, hyperscale AI data centers, telecom infrastructure and mobility applications.

Find KULR: Website | X | Telegram | LinkedIn | Instagram | TikTok | Facebook

About Hylio
Hylio, Inc. is a U.S.-based designer and manufacturer of advanced unmanned aerial systems headquartered in Texas. The company focuses on delivering American-made UAS platforms engineered for performance, reliability, and compliance across commercial, public-sector, and defense-adjacent applications.

Find Hylio: Website | X | LinkedIn | Instagram | Facebook

Safe Harbor Statement
This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 31, 2025, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. All forecasts are provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely based on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. Except as otherwise required by applicable law, we assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: ir@kulr.ai

KULR Media Relations:
M Group Strategic Communications (on behalf of KULR)
Email: kulr@mgroupsc.com


FAQ

What will KULR and Hylio produce together for KULR (KULR) and Hylio drones?

They will design and manufacture NDAA-compliant battery systems in Texas for Hylio unmanned drones. According to the company, the collaboration covers design, prototyping, qualification, and domestic manufacturing focused on secure U.S.-based supply chains for mission-critical UAS use.

How does the collaboration affect KULR (KULR) manufacturing footprint and supply chain?

The collaboration aims to expand KULR's U.S. manufacturing footprint with Texas-centered activities. According to the company, engineering, integration, and manufacturing are expected to be centered in Texas to support NDAA-compliant supply chains.

Who are the target customers for the KULR (KULR) and Hylio battery systems?

Target customers include government, defense-adjacent programs, and commercial agriculture operators requiring certifiable energy storage. According to the company, products aim to serve regulated, mission-critical use cases and commercial agricultural operations.

Does the announcement specify production timelines or financial terms for KULR (KULR)?

No, the announcement does not disclose contract values, production volumes, or firm timelines for manufacturing. According to the company, the collaboration will evaluate chemistries and configurations before qualifying domestically manufactured systems.

What market opportunity did KULR cite for agricultural drones tied to this collaboration?

KULR cited a Research and Markets projection from $4.08B in 2026 to $8.65B by 2032 (CAGR 13.21%). According to the company, this growth underscores demand for domestically manufactured, NDAA-compliant UAS components.

Will KULR (KULR) batteries be NDAA-compliant for federal procurement?

The collaboration aims to produce NDAA-compliant battery systems suitable for federal procurement and restricted supply chains. According to the company, the partnership focuses on secure, U.S.-based manufacturing to meet federal and regulatory requirements.