# South 8 Begins Production of Cold Weather Batteries in San Diego

South 8 Technologies has initiated volume production of its ARCTIC™ AE35 lithium-ion battery cells designed for extreme cold weather conditions, supporting defense customers with reliable performance from -60 °C to +60 °C. The new semi-automated manufacturing line located in San Diego, California, is set to produce 5 MWh annually by 2027. This development enhances domestic supply chain resilience and aligns with upcoming National Defense Authorization Act (NDAA) Section 842 sourcing requirements, which emphasize domestic manufacturing for defense-related components.

- South 8 Technologies acts as the prime contractor supplying advanced lithium-ion batteries to defense customers including 3ME Technology and Galvion.
- The production facility in San Diego strengthens U.S. domestic manufacturing capabilities critical for defense supply chains, particularly for extreme environment applications.
- Procurement professionals should note the compliance with NDAA Section 842 rules, indicating a strategic shift toward domestically sourced battery components in defense contracts.
- Contractors and suppliers in battery technology and defense manufacturing may find new opportunities aligned with these sourcing mandates and the growing demand for extreme cold weather battery solutions.

**Jurisdictions:** federal
**Industries:** Defense & Military, Energy & Utilities
**Topics:** Regulatory Compliance, Physical Infrastructure
**Published:** September 24, 2026

### Vendors
- South 8 Technologies (prime contractor)
- 3ME Technology (defense customer)
- Galvion (defense customer)

### Key Quotes
> We provide the cold weather performance our customers require while building cells domestically with a supply chain that was selected to comply with the NDAA Section 842 rules.
> — Rusty Heffner, Vice President of Strategy at South 8 Technologies

### Sources
- [South 8 Begins Volume Production of Extreme Cold Weather Lithium-Ion Batteries for Defense Customers](https://www.streetinsider.com/Business+Wire/South+8+Begins+Volume+Production+of+Extreme+Cold+Weather+Lithium-Ion+Batteries+for+Defense+Customers/27100958.html) - StreetInsider