South 8 Technologies has launched a semi-automated production line in San Diego for its new ARCTIC AE35 lithium-ion batteries. These 18650 cylindrical cells are engineered to operate in extreme temperatures ranging from -60 to 60 degrees Celsius.

The core innovation is the proprietary LiGas technology, which replaces conventional liquid electrolytes with a liquefied gas composition. This design allows the batteries to maintain performance and charging capabilities in conditions where standard lithium-ion cells typically lose efficiency.

The company is targeting specialized sectors that operate in harsh climates, including drone systems, communication devices, remote sensors, and military equipment. The new facility in San Diego will manufacture both the AE35 cells and the LiGas electrolyte.

South 8 Technologies is currently establishing a local supply chain and has already secured agreements with key material and component providers. The company aims to scale its annual production capacity to 5 MWh by 2027 as it transitions from qualification testing to full-scale manufacturing.