South 8 Technologies has started operating a semi-automated battery cell manufacturing line at its facility in San Diego, California. The line will make cylindrical cells for defense and specialty applications that need reliable power in extreme cold.

The expansion supports production of South 8’s ARCTIC AE35 18650 cell. The company says the line will support 5 MWh of annual production in 2027 as it scales capacity for customers including 3ME Technology and Galvion.

The cell uses South 8’s LiGas liquefied gas electrolyte, which enables it to charge and discharge across a stated temperature range of −76°F (−60°C) to 140°F (60°C).

Battery performance becomes a practical concern for equipment expected to work in freezing conditions. South 8 is positioning the AE35 for customers that build battery packs and platforms used in unmanned systems, communications equipment, remote sensing, and soldier power.

The operational line gives the company a way to increase production of the cells while serving defense and specialty markets.

South 8 identified 3ME Technology and Galvion as defense customers commercializing battery solutions that use its LiGas electrolyte.

The company said the new line creates a path from cell qualification to production as it scales capacity through 2027. South 8 has not stated that the newly operational line is producing at that rate today.

South 8 will produce both the AE35 cells and its proprietary electrolyte at its San Diego facility. Alongside the line’s launch, the company said it has established supplier agreements for key cell materials and components.

Those agreements are intended to support a supply chain that avoids reliance on foreign entities of concern.

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