Boresight Scales US Manufacturing Fifteenfold to Meet Drone Demand

Massive US Expansion to Meet Growing Military Demand

Boresight Ltd (ASX:BST) is making a decisive move to boost its US manufacturing muscle with a new 812 square metre facility in Huntsville, Alabama, about 15 times the size of its existing site. This expansion is a clear response to surging demand from US military and defence customers for its aerial target drones, including the well-established BQ-400 model, which has sold over 6,000 units globally.

The new site is designed to ramp up production significantly, with initial capacity to churn out more than 5,000 BQ-400 drones annually. It will also manufacture the upcoming BQ-750 Block 2 and eventually all of Boresight’s drone offerings for the US market, enabling economies of scale and cost efficiencies through bulk purchasing and advanced 3D printing technology investments.

Strategic Location and Operational Advantages

Huntsville is a strategic choice, nestled within a major US defence and government hub known for its concentration of Counter-Uncrewed Aerial Systems (C-UAS) companies. The local government’s support since Boresight’s US establishment in 2023 has been instrumental. Manufacturing domestically not only sidesteps potential import tariffs and trade policy risks but also allows Boresight to leverage the "Made in the USA" label, a growing requirement in US military procurement.

Relocating production closer to its US customer base will reduce freight costs and improve responsiveness, key factors in defence contracting. The new facility will also consolidate sales, drone technicians, and support staff under one roof, boosting operational coordination and expanding market reach.

Australian Facility Remains Innovation Centre

While the US footprint expands, Boresight’s Australian facility will continue to serve non-US markets and remain the company’s innovation hub. This dual-structure strategy preserves the company’s global engineering and development capabilities while scaling manufacturing capacity in its largest market.

Managing Director Justin Olde emphasised the scale-up’s benefits: "This new facility will allow Boresight to expand and scale our manufacturing capacity to meet surging demand from our US based customers, both the military and industry. It enables a massive scaling of production from the hundreds to thousands of aerial target drones, driving up efficiencies and driving down costs."

Transition Timeline and Outlook

Boresight has already taken occupancy of the Huntsville facility and plans to transfer production from the current site starting August 2026, aiming for completion by the end of September. The move complements recent capital-raising efforts aimed at boosting manufacturing capabilities to meet demand in the US and Europe, underpinning the company's growth ambitions in key defence markets.