Dragonfly Energy’s Latest Deal Adds Revenue, Products And New Battery Markets

Dragonfly Energy Holdings Corp. (NASDAQ:DFLI), a lithium battery technology company spanning cell manufacturing, pack assembly and full-system integration, recently completed the acquisition of the well-recognized battery brand, Dakota Lithium®. The acquisition expands Dragonfly Energy’s reach across marine, outdoor recreation, powersports, golf cart and other specialty battery markets.

The deal, which is expected to begin contributing meaningful revenue and be accretive to Adjusted EBITDA in the fourth quarter of 2026, comes at a time when lithium battery technology is drawing some interest because many expect demand to remain strong as electric vehicles, AI data centers and grid-scale energy storage continue to expand. By 2032, the lithium battery market is poised to hit $154.4 billion, growing at a CAGR of 13.1% between now and the forecast period. 

Dragonfly Energy is positioned within that opportunity by building lithium battery packs and complete power systems for mobile, stationary and industrial applications, positioning it to benefit if demand for lithium-based batteries continues to grow. The company is also working towards advancing domestic battery cell manufacturing through its patented dry electrode process and the development of next-generation battery technologies, including all-solid-state battery cells.

Expanding In Specialty Battery Markets 

Dakota Lithium, meanwhile, is a well-recognized lithium battery brand with an established presence across specialty battery markets. The acquired assets include the Dakota Lithium brand and related intellectual property, product inventory, a complementary battery portfolio and established customer and distributor relationships. Dragonfly paid $4.0 million for Dakota Lithium, consisting of $1.0 million in cash and $3.0 million in Dragonfly Energy common stock. The equity consideration was valued at $2.00 per share, or 1,500,000 shares of common stock, representing a premium to recent trading levels, and is subject to a 12-month contractual lock-up. The transaction structure limits upfront cash requirements and preserves liquidity as the acquired operations are integrated.

Dakota Lithium generated about $12 million in net revenue in 2025, significantly below levels achieved in prior years amid working-capital limitations and inventory constraints that materially reduced product availability. Dragonfly Energy said that by supporting the company through its existing commercial, operational, fulfillment and customer-support infrastructure, it can help restore product availability, support existing customers and create a complementary revenue stream without requiring a proportional increase in fixed overhead. Dragonfly Energy intends to operate Dakota Lithium as a distinct brand alongside its Battle Born Batteries® brand. 

"We believe Dakota Lithium represents a compelling strategic and financial opportunity for Dragonfly Energy," said Dr. Denis Phares, Chief Executive Officer of Dragonfly Energy. "The business established a meaningful multiyear revenue base across attractive specialty battery markets, but more recently faced working-capital and inventory constraints that limited product availability. By supporting the Dakota Lithium brand through infrastructure we already have in place, we believe we can restore availability, reconnect with customers and grow the business efficiently."

Transaction Structure Preserves Liquidity 

In connection with the closing of the acquisition, Dragonfly Energy also announced its existing lenders agreed to amend certain terms of its debt arrangements, including reducing the minimum cash covenant and providing for the next two quarters of interest to be paid in kind rather than in cash. These amendments are expected to preserve approximately $1 million of near-term liquidity and provide Dragonfly Energy with additional financial flexibility.

With only $1 million of the $4 million purchase price paid in cash, Dragonfly Energy acquired an established battery brand that generated approximately $12 million in net revenue in 2025 despite significant working-capital and inventory constraints. By bringing Dakota Lithium under the same commercial, operational, fulfillment and customer-support infrastructure as Battle Born Batteries®, Dragonfly Energy believes it can restore availability and grow well beyond that revenue base without a proportional increase in fixed overhead. Management expects the acquisition to begin contributing meaningful revenue and be accretive to Adjusted EBITDA in the fourth quarter of 2026, creating a capital-efficient path to improved profitability and greater long-term value from two complementary brands under one roof. To learn more about Dragonfly Energy and the deal, click here.

Featured image from Dragonfly Energy.

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