# DoD Supports Canadian LFP Battery Production

The U.S. Department of Defense awarded Nano One **US$12.9 million** in September 2024 through DPA Title III to support North American lithium iron phosphate (LFP) cathode production. Nano One is expanding its Candiac, Québec facility, with capacity targeted to reach approximately 800 tonnes per year in the first half of 2027. The development is relevant to defense and civilian battery supply chains as U.S. restrictions on batteries sourced from foreign entities of concern begin phasing in from 2028, while Canada advances defense supply-chain and drone initiatives. Nano One’s market positioning is vendor-provided information.

- Contractors and battery buyers can assess how the planned Canadian production capacity may fit their supply-chain needs and any applicable qualification requirements; the stated capacity target is for 2027, not current production.
- Businesses pursuing Canadian defense opportunities can review the Defence Drone Initiative Marketplace tender, W8703-270055, as a potential route to engage with drone-related procurement.
- Procurement teams sourcing batteries for U.S. programs should account for the restrictions beginning to phase in from 2028 when evaluating supply sources; the signal does not specify detailed qualification criteria.

**Jurisdictions:** federal
**Industries:** Defense & Military, Energy & Utilities
**Topics:** Grants & Funding, Regulatory Compliance
**Published:** October 03, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- Department of National Defence (DND)
- Government of Canada

### Vendors
- Nano One (DPA Title III awardee and LFP cathode materials producer)
- Worley Chemetics (Engineering and technology solutions provider supporting Nano One’s licensing strategy)

### Sources
- [Nano One Positions LFP Cathode Materials for Defence and National Security as Export Controls Threaten Battery Supply Chains  | Nano One®](https://nanoone.ca/news/nano-one-positions-lfp-cathode-materials-for-defence-and-national-security-as-export-controls-threaten-battery-supply-chains) - Nano One