Critical Tech and Manufacturing Insider (August 26, 2025)

From surging drone demands to quantum advances and new clean energy hubs—this week showcases the frontlines of critical tech and industrial transformation. Check out the summary highlights, Regional Innovation, Manufacturing and Tech sections for the full rundown.

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This Week's Highlights

Securing U.S. Critical Minerals Supply Chain - Nearly $1 billion in new funding has been announced to strengthen domestic mining, processing, manufacturing, and recycling of vital critical minerals.

Opinion - How to Recharge U.S. Battery Production - Incentives remain intact even as clean energy demand slows, opening new opportunities for defense to drive battery manufacturing growth.

Pentagon Prepares New Battery Strategy as Drone Demands Surge - A congressionally mandated 2026 battery strategy will aim to secure domestic supply chains, standardize battery systems, and meet surging drone energy needs.

NIST Awards $1.8 Million to Small Innovators - Phase I funding supports 18 small businesses developing technologies in AI, semiconductors, additive manufacturing, metrology, and standards.

Federal Innovation Challenge Offers Up to $1 Million in Prizes - A new two-stage competition invites breakthrough transportation solutions for transformative infrastructure improvements via concept and proposal submissions.

Regional Innovation

Louisiana Emerges as U.S. Hub for Battery Materials Production - The state now hosts multiple new plants for rare earths, graphite, electrolytes, and solvents—transforming into a key clean energy supply chain hub.

New Naval Grant Spurs Next-Gen Military Steel Development - A $5 million award funds three years of advanced manufacturing collaborations—advancing additive welding and military-grade steel innovation for naval defense.

U.S. Army Funds Multimillion-Dollar Solid-State Metal Manufacturing Research - This new grant supports innovations in solid-state processes to create and repair metal components—enhancing U.S. defense capabilities and resiliency.

Purdue Polytechnic Elevates Advanced Manufacturing Leadership Before Congress - Representing industry-ready education and digital manufacturing, the institute highlighted its pivotal role in shaping national smart manufacturing policy.

Insights from PSF Sprints and Analyses

PSF MI Sprints: DIU Low-Cost Undersea Effectors (UUVs)

Public Spend Forum recently completed a rapid market intelligence sprint focused on small and medium unmanned underwater vehicles (SUUVs and MUUVs). Leveraging our AI-MI technology alongside traditional research methods, the sprint delivered actionable insights to the Defense Innovation Unit (DIU), supporting strategic planning and future maritime technology initiatives. Learn More>>

Tech Sector Updates

 DIU Launches Blue Object Management Challenge with $500K Incentive - The challenge invites U.S.-based firms to develop AI-powered platforms for real-time tracking of friendly assets, with finalists entering a 12-week accelerator program.

AI-Driven Autonomous Science Aims to Bridge Materials Valley of Death - At an NREL workshop, experts explored AI-powered autonomous workflows designed to ensure lab discoveries are market-ready and scalable.

New Quantum Division Advances Defense and Drone Research - ZenaTech’s new unit accelerates quantum-powered secure communication, navigation, and AI-driven drone operations aligned with defense priorities. 

Navy Trials Fiber-Optic Tethered Drones During Swarm Warfare Exercise - Silent Swarm 25 tested tethered UAVs resistant to jamming, exploring autonomous operations for swarming electronic warfare and surveillance.

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