Unusual Machines, Inc. (NYSE American: UMAC) said on October 19, 2026, that it has completed its acquisition of DroneNX LLC, which operates as Upgrade Energy. The California-based business manufactures drone batteries and power systems, adding those products to Unusual Machines’ existing range of drone components.
#Acquisition adds batteries and power systems
The transaction was initially announced on May 11, 2026. Unusual Machines said the deal expands its portfolio beyond products such as motors, headsets and other drone hardware to include battery technology and power systems.
Allan Evans, chief executive of Unusual Machines, said batteries are an essential part of the drone supply chain and described Upgrade Energy’s technology and manufacturing expertise as an addition to the company’s powertrain capabilities.
Matthew Barnard, chief executive of Upgrade Energy, said the combined businesses intend to build on Upgrade Energy’s battery expertise, expand U.S. production and serve more customers. He also said the combination is intended to support a larger role in the drone supply chain.
#Manufacturing operations in California and Florida
Before the acquisition closed, Unusual Machines began increasing battery production and adding personnel at Upgrade Energy’s 18,500-square-foot facility in Torrance, California.
The company also plans to establish battery pack operations in Orlando, Florida. Unusual Machines said the manufacturing expansion is intended to support customers in the defence, enterprise and commercial sectors, while its Fat Shark and Rotor Riot brands serve the consumer FPV market.
#Unusual Machines’ product portfolio
Unusual Machines describes itself as a provider of NDAA-compliant drone components focused on developing a domestic supply chain for the U.S. drone industry. Its stated product range includes flight controllers, electronic speed controllers, video systems, motors, FPV headsets, cameras, batteries and power systems.
The company cited Fact.MR’s estimate that the U.S. drone components market represents a $3 billion to $5 billion opportunity.
#Risks identified by the company
Unusual Machines said the acquisition and related manufacturing plans are subject to risks, including challenges integrating Upgrade Energy and achieving the anticipated benefits within the expected time frame or at all. The company also identified possible unanticipated acquisition or integration costs and delays, as well as the risk of losing key Upgrade Energy personnel, customers or suppliers.
Other risks cited include difficulties scaling manufacturing capacity, establishing new facilities and reaching expected production volumes, quality and margins. The company also pointed to the availability and cost of raw materials, battery cells and other components; tariffs, trade restrictions and supply-chain disruptions; and risks linked to lithium battery manufacturing, including safety issues, recalls, warranty claims and environmental, health and safety compliance.
Unusual Machines further identified potential changes in U.S. government defence and procurement priorities, budgets and funding; drone-related laws and regulations; competition; product demand; new-product development; intellectual-property protection; and broader economic, market, industry and geopolitical conditions.
#Key Takeaways
- Unusual Machines completed its acquisition of DroneNX LLC, operating as Upgrade Energy, on October 19, 2026.
- The transaction adds U.S.-made drone batteries and power systems to Unusual Machines’ existing components portfolio.
- Battery production and hiring had begun at Upgrade Energy’s 18,500-square-foot Torrance, California facility before closing.
- Unusual Machines plans to establish battery pack operations in Orlando, Florida.
- The company identified integration, manufacturing, supply-chain, battery-safety, regulatory and market risks associated with the transaction and its expansion plans.
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