Russia wants to significantly reduce its dependence on foreign batteries for drones and is putting up to 10.46 billion rubles into financing a new lithium-ion battery factory. The money is not going directly to the operator, but to Sberbank, which will use it to cover losses from a subsidized loan for the company INESIS. The plant is planned to have an annual capacity of 4 gigawatt-hours, around 200 times more than the existing pilot production in Tolyatti.
INESIS is 85.81 percent owned by the company "Transport of the Future," which describes itself as one of Russia's largest developers and manufacturers of unmanned aviation systems. Production lines for batteries, circuit boards, electric motors, propellers, and other drone components are already operating in Tolyatti. Vladimir Putin took part in the opening of a research and production center in early 2025 where the company plays a central role. More than 20 billion rubles are said to have already gone into the project.

The military connection is explosive. "Transport of the Future" officially presents its technology mainly as civilian and sells agricultural drones, among other things. At the same time, there are reports that developments from the company's orbit are being used by Russian forces in Ukraine. That includes the "Hector" drone made by a subsidiary. The company also works with a military training center in Tolyatti where drone operators are trained.

On top of that, there is an ongoing criminal case. Former company chief Yuri Kozarenko was arrested in May 2026 on suspicion of fraud on an especially large scale. Investigators are looking, among other things, into the possible theft of around 70 million rubles from a state defense contract. Despite that history, the expansion is now receiving massive state support. Russia wants not only to increase its battery production, but also to make its manufacturers of FPV drones less dependent on Western export restrictions. China remains the most important supplier of raw materials and technology for now, but Moscow is clearly trying to reduce that dependence step by step.
To be continued ...
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