South 8 Technologies, a U.S. manufacturer of lithium-ion battery cells for extreme environments, has signed a Letter of Intent (LOI) with Arctic Research and Development (ARD), a UK-based developer of communications and autonomous systems for extreme cold environments with a focus on developments for Northern Europe and the Arctic. The agreement supports future supply of South 8’s ARCTIC™ AE35 18650 cells for BB-2590 battery systems and establishes a framework for broader collaboration on extreme cold applications.
The LOI formalizes an ongoing collaboration between the two companies. ARD is currently building and testing prototypes integrating South 8 cells into BB-2590 battery systems, a standard military format used to power communications, sensing and other mission-critical equipment. ARD is also working closely with end users to develop extreme-cold battery solutions for UAS platforms, including ISR and FPV systems, where cold-soaked batteries can prevent an aircraft from launching or significantly reduce endurance. In addition, ARD also plans to participate in upcoming winter field demonstrations of its BB-2590 battery systems, including exercises in Alaska and Norway.
ARD’s founders are experienced Arctic explorers with firsthand knowledge of the demands of extreme cold, making them uniquely positioned to evaluate battery performance in these environments. As the BB-2590 and UAS programs advance, the LOI establishes a path toward commercial supply of AE35 cells and broader collaboration on extreme cold battery systems.
“Cold kills batteries. On the ice, that means radios go quiet, drones stay grounded, and teams haul spare packs just to stay powered. Our team has lived that reality through more than five decades of boots-on-the-ice Arctic operations. South 8’s ARCTIC cells redefine what batteries can do in extreme cold, and this agreement lets us put that capability into the hands of the next generation of Arctic operators, from allied defence forces to civilian operators,” said Freddie Fennessy, COO and Co-Founder of Arctic Research and Development.
The announcement marks another step in the commercial adoption of South 8’s LiGas-enabled technology following the start of volume production at its San Diego manufacturing facility.
“ARD brings firsthand experience operating in some of the world’s most demanding cold environments, making their validation of the AE35 especially valuable,” said Rusty Heffner, Vice President of Strategy at South 8 Technologies. “This LOI creates a path from prototype development to commercial supply. With AE35 volume production underway, we are ready to support ARD as it advances the BB-2590 and develops additional battery systems for extreme cold.”
Powered by South 8’s proprietary LiGas liquefied gas electrolyte technology, the ARCTIC™ AE35 is a 3.5 Ah 18650 cell engineered for reliable operation in extreme temperatures. The cell delivers reliable discharge down to −60 °C (−76 °F) and supports charging down to −40 °C (−40 °F), expanding operational capability in environments where conventional lithium-ion batteries suffer severe degradation or complete failure.
The growing pipeline of customer programs comes as South 8 scales domestic manufacturing. The company’s semi-automated manufacturing line in San Diego is now supporting volume cell production, with annual cylindrical cell production capacity slated to reach 5 MWh in 2027.
ABOUT SOUTH 8 TECHNOLOGIES
Based in San Diego, California, South 8 Technologies is pioneering the world’s first liquefied gas electrolyte, LiGas®, for lithium-ion batteries. LiGas cells enable reliable charge and discharge from −60 °C to +60 °C (−76 °F to +140 °F), unlocking applications in defense, aerospace and specialty markets where conventional lithium-ion batteries are limited by extreme temperatures.
South 8 manufactures battery cells in San Diego and supplies customers seeking to integrate LiGas technology into next generation battery systems.
South 8 is redefining where lithium-ion can go.
south8.com
Trademark Notice: ARCTIC™ and AE™ are trademarks of South 8 Technologies, Inc. LiGas® is a registered trademark of South 8 Technologies, Inc.
ABOUT ARCTIC RESEARCH & DEVELOPMENT
Arctic Research and Development builds high-latitude technology for the Arctic, the fastest-changing frontier on Earth. ARD serves government, research, logistics, and energy clients operating in the Far North, with products spanning power, communications, and autonomy.
ARD builds software that thinks like an Arctic explorer, hardware engineered for months of cold and darkness, and field-proven operational frameworks for sustained capability in extreme environments. The company is led by a team with more than 50 years of polar experience and operates across the UK, US, and Scandinavia, with dedicated test footprints in Svalbard.
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