Kraken Robotics Receives $34M of SeaPower Battery Orders

February 26, 2025

Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG, OTCQB: KRKNF) announces that it has received orders totaling $34 million for SeaPower™ pressure tolerant batteries from three clients. In addition, Kraken has signed a lease to open a new battery production facility in Nova Scotia to meet rising defense market demand for uncrewed underwater vehicles (UUVs).

“With the emergence of new larger classes of UUVs and greater adoption of these platforms in naval fleets, reliable subsea power requirements are increasing,” said Greg Reid, President and CEO of Kraken Robotics. “These new orders illustrate the robust customer demand we have for Kraken’s SeaPower batteries across the U.S., Europe, and Asia Pacific.”

One order, totaling $31 million, represents Kraken’s largest battery order to date. The client, who cannot be named at this time, provides UUVs to the defense industry. Two commercial clients with UUVs also placed orders totaling $3 million.

“We have new battery form factors that will be released in late 2025 that are generating strong interest across several vehicle manufacturers,” said Mr. Reid. “This will allow us to address a segment of the market that we have not previously had solutions for – small and medium-sized UUVs. Once completed, our new facility will allow us to triple our current battery production capacity.”

Kraken’s new manufacturing facility will provide approximately 60,000 square feet of office and production space and is expected to be operational toward the end of 2025. With this new capacity, Kraken will be in an improved position to meet growing customer demand in the subsea power domain with manufacturing from both Canada and the original facility in Germany. Kraken’s subsea lithium polymer batteries are delivering extended endurance and reduced costs to customers who are providing important national security and commercial subsea survey and inspection work.

Key Highlights on New Manufacturing:

• Strategic Expansion: Kraken is investing $10 million in a new manufacturing facility to expand its subsea power leadership. The facility is located near many current customers in the U.S. northeast, providing shorter delivery times and enhanced customer support capabilities. This initial expansion provides a reduced risk path to technology transfer of skills and intellectual property from the German facility to the North American market. As Kraken expands its presence in the United States, this will allow for an easier transition for additional manufacturing south of the Canadian border. This new facility will include multiple 6,000-meter rated pressure testing tanks allowing Kraken to increase total subsea battery production to almost $200 million annually, once fully operational.
• Commitment to Innovation: Kraken’s commitment to innovation is evident in the substantial investment in R&D and new product development, a key to continued growth. Building on the region’s strengths in industrial infrastructure, Kraken plans to create at least 200 permanent new advanced manufacturing jobs over the next four years and 25 temporary construction jobs to retrofit the new facility. The expansion will provide meaningful, sustainable employment opportunities for years to come, with a focus on working with local stakeholders to develop programs aimed at skills diversification for local talent. The new facility will be situated in the largest industrial park east of Montreal and north of Boston and be able to access talent from the multiple technical schools and universities in the region.  Kraken will continue with its presence at the Center for Ocean Ventures and Entrepreneurship (COVE) where they design autonomous launch and recovery systems for use on crewed and uncrewed naval vessels.

Source : Kraken Robotics Inc.