Bengaluru-based deep-tech firm Dreamfly Innovations announced plans to set up a new aviation battery manufacturing facility in North Bengaluru.

The 40,000 sq ft plant entails an investment of Rs 400 mn and will be one of India's largest facilities dedicated to drone batteries. The unit will begin with an annual production capacity of 100 megawatt-hour (MWh), scalable to 200 MWh.

Kajal Shah, co-founder and chief executive, said the facility was part of an effort to develop state-of-the-art batteries for India and to support domestic drone makers under Make in India and Atmanirbhar Bharat ambitions. The company described the project as aligned with the vision of Viksit Bharat and as a step towards building local manufacturing capabilities in aviation batteries.

The facility will manufacture batteries for drones used in defence, surveillance, inspection, agricultural spraying, logistics and emerging air mobility platforms such as air taxis. Dreamfly reported that its batteries currently have 77 per cent indigenous content in line with the government's Kisan Drone Policy, and the plant aims to reduce reliance on imported components.

Avaana Capital, which backed the investment, said the plant strengthens Dreamfly's position in next generation battery technology and advances India's aerial mobility sector. The investor argued the project would help Indian drone makers build safer and more competitive products and would lower import dependence for battery components.

Dreamfly develops batteries for drones, aviation and aerospace applications drawing on lithium based chemistries, graphene and supercapacitor technology. The company expects the facility to contribute to a domestic supply chain for energy storage in unmanned and crewed aerial platforms. The project is positioned as a manufacturing-led response to growing demand for specialised drone batteries.