Russia to build battery gigafactory for drones with state-backed financing

Russia to build battery gigafactory for drones with state-backed financing 8 September, 07:21 PM World Production lines for lithium-ion batteries for drones are already in operation at the Transport of the Future facility in Tolyatti (Photo: Flickr) The Russian government will direct up to $121 million, or 10.46 billion rubles, to subsidize a preferential loan for the construction of a lithium-ion battery plant linked to a drone manufacturer, according to a government order dated Sept. 7 uncovered by The Insider. Under the order, Russia's federal budget will provide compensation to Sberbank for lost income on a soft loan granted to Innovative Energy Systems (INESIS) for the construction of a lithium-ion battery plant with an annual capacity of 4 gigawatt-hours. The direct construction cost of the plant could not be established from the document, The Insider reported. Ad The subsidies are intended to last for several years. Through 2034, the total amount could reach $121 million, meaning the funds are effectively mapped out for 2026-34, although the final budget obligation deadline for the project runs through Dec. 31, 2040. INESIS produces batteries and is closely tied to Russia's drone aviation sector. According to the report, 85.81% of the company belongs to Transport of the Future Group LLC. Transport of the Future describes itself as one of Russia's largest developers and manufacturers of unmanned aerial systems. At its facility in Tolyatti, the company already operates production lines for lithium-ion batteries for drones, electronic boards, electric motors, propellers, and other components. In January 2025, Russian dictator Vladimir Putin took part in the opening of a scientific and industrial center for unmanned aerial systems in Tolyatti, where Transport of the Future is the anchor resident. At the same time, INESIS launched a pilot serial workshop for lithium-ion battery production with capacity of 20 megawatt-hours per year. That means the new plant described in the government order would have capacity about 200 times greater. Transport of the Future has already received state support. The company participates in Russia's national Unmanned Aerial Systems project and is a resident of the National Technology Initiative. According to the company itself, more than 20 billion rubles, about $232 million, have already been invested in the project's development. Transport of the Future officially presents most of its products as civilian, including agricultural drones. At the same time, reports indicate that related products have been used by the Russian military. Read also: EU commissioner warns Russia may use up to 9 million drones in 2026 Novaya Gazeta Europe reported that the Hector drone, produced by Drone-Service, a subsidiary of Transport of the Future and marketed as an agricultural drone, has been used by Russian troops in Ukraine. The outlet also reported that the company cooperates with the military training center of Tolyatti State University, where drone operators are trained. The military war may be swinging in our favor, but the information war continues. Just as an army needs soldiers, so does a free society need its journalists to ensure that people have access to honest, trustworthy voices to understand the world around them. For the past five years, The New Voice of Ukraine has been working tirelessly to push back against Russian narratives and defend democracy. But we cannot do it alone. Please consider supporting us on Patreon for just $5 a month – your donation does directly to supporting journalists and ensuring that this front of the infowar says solid and defended. Thank you. Follow us on Twitter, Facebook and Google News