Defense Innovation Unit (DIU)

The Defense Innovation Unit (DIU) program, under Program Element PE 0603342D8Z, is managed by the Office of the Secretary of Defense and serves as the Department's principal organization for accelerating the adoption of commercial technology throughout the military. DIU's mission is to strengthen U.S. national security by rapidly prototyping, fielding, and scaling commercially derived solutions to address critical operational capability gaps. In FY 2026, DIU's expanded mandate, codified by the National Defense Authorization Act, empowers it as a direct advisor to the Secretary and Deputy Secretary of Defense. DIU supports initiatives to build enduring technological advantages across the defense ecosystem, including the industrial base, private sector, and academia.

DIU Core Activities (Project 434/474) focus on leveraging commercial innovation in seven key technology areas: Artificial Intelligence/Machine Learning, Autonomy, Cyber, Energy, Human Systems, Space, and Emerging Technology. DIU partners with organizations across DoD, interagency, and allied nations to prototype and transition solutions that address strategic priorities, such as operational plans and deterrence options. The program emphasizes clarity in demand signals from Combatant Commands and Services, mobilizes nodes of commercial innovation, and builds international communities of innovation. DIU also serves as the senior advisor on technology innovation and competition, aiming to catalyze scalable impact across the Department.

Defense Advanced Battery Supply Chain (Project 475) addresses vulnerabilities in the DoD's battery supply chain, particularly the reliance on foreign sources for lithium-ion cell manufacturing and active electrode materials. The program's objectives are to leverage commercial energy storage technology, standardize battery form-factors, and onshore domestic and allied battery cell production. Key initiatives include the Jumpstart for Advanced Battery Standardization (JABS) and Family of Advanced Standard Battery (FAStBat) projects, which prototype and transition standardized battery families into active Programs of Record. This effort aims to strengthen supply chain resiliency, reduce costs, and align defense requirements with commercial market advancements.

Tactical Vehicle Hybridization (Project 478) seeks to enhance operational reach and energy efficiency for tactical vehicles by integrating non-propulsive hybrid systems that store excess energy from diesel engines. The project involves the development of kits for platforms like the Family of Medium Tactical Vehicles and Logistics Vehicle System Replacement, enabling vehicles to harvest and store energy for use when engines are off. This approach reduces fuel consumption, lowers resupply convoy requirements, and supports the transition toward an all-electric tactical fleet by leveraging commercial hybrid power systems and battery integration.

Synthetic Fuels for Contested Environments (Project 479) and Hydrogen at the Tactical Edge of Contested-Logistics (HyTEC, Project 480) are focused on increasing energy resilience and reducing logistics vulnerabilities. The synthetic fuels initiative aims to develop and deploy systems capable of producing ASTM and TRIPOL certified synthetic diesel and jet fuels on-site, mitigating reliance on global supply chains. The HyTEC program explores commercially available hydrogen technologies to enable on-site fuel production and storage, supporting operational energy needs in austere and contested environments.

Defense Innovation OnRamp Hubs (Project 481/482) and Innovation with Academia (Project 483) are designed to expand the National Security Innovation Base by fostering collaboration between DoD, industry, and academia. OnRamp Hubs scale up engagement with regions and entities not traditionally involved with defense, while the expansion project funds additional hubs in critical areas. The Innovation with Academia initiative supports regional innovation efforts and encourages new entrants into the National Security Innovation Base, enhancing the Department's access to diverse talent and novel technologies.

Additional DIU projects include Industrial Foreign Influence (Project 486), which strengthens the Department's ability to monitor and respond to foreign influence in critical industrial sectors by increasing access to commercial intelligence platforms. Nuclear Advanced Propulsion and Power (Project 487) prototypes radioisotope power systems for high-power spacecraft. Reusable Hypersonic Technology (Project 488) and Hypersonic Unmanned Wingman (Project 490) focus on developing low-cost, dual-use hypersonic platforms and experimental cruise vehicles. These initiatives demonstrate DIU's commitment to accelerating the transition of commercial technologies into defense applications, enhancing operational capabilities, and maintaining U.S. military-technical superiority.