Dragonfly Energy Holdings Corp. (DFLI) is making a move that could reshape its growth trajectory. On Friday, the lithium battery technology company announced it has acquired substantially all operating assets tied to the Dakota Lithium brand for $4 million. This isn't just a portfolio expansion; it's a strategic push into marine, outdoor recreation, powersports, golf cart, and other specialty battery markets.
The deal brings more than just a brand name. Dragonfly is picking up intellectual property, inventory, a complementary battery portfolio, and established customer and distributor relationships. Dakota Lithium generated roughly $12 million in net revenue in 2025, even while facing working-capital and inventory constraints that limited product availability. That's a solid revenue base that Dragonfly believes can be unlocked with better support.
Dragonfly expects the acquisition to contribute meaningful revenue and become accretive to adjusted EBITDA by the fourth quarter of 2026. The company plans to operate Dakota Lithium as a distinct brand alongside its existing Battle Born Batteries line, leveraging its current commercial, fulfillment, and customer-service infrastructure. The idea is to restore product availability and grow revenue without a proportional increase in fixed costs.
The deal's structure is notably capital-efficient. Dragonfly paid $1 million in cash and $3 million in common stock, issuing 1.5 million shares valued at $2 each. Those shares are subject to a 12-month lock-up, which aligns the seller's interests with the company's long-term performance.
On the liquidity front, Dragonfly reported $8.64 million in cash and cash equivalents as of March 31, 2026. Its lenders have also stepped in to help, reducing the minimum cash covenant and allowing interest payments for the next two quarters to be paid in kind. These amendments are expected to preserve roughly $1 million of near-term liquidity, giving the company more breathing room as it integrates the new business.
CEO Denis Phares is optimistic about the deal's potential. "We believe Dakota Lithium represents a compelling strategic and financial opportunity for Dragonfly Energy," he said. "By supporting the Dakota Lithium brand through infrastructure we already have in place, we believe we can restore availability, reconnect with customers and grow the business efficiently."
Investors seem to like the news. Dragonfly Energy shares closed 6.61% higher at $1.29 on Thursday, according to market data.
