The US Navy has awarded Hyliion Holdings a $41.7-million contract to develop larger versions of its KARNO power system for defense applications.
The US Navy has awarded Hyliion Holdings a $41.7-million contract to develop larger versions of its KARNO power system for naval and land-based defense applications.
The contract, issued by the Office of Naval Research, calls for Hyliion to design, build, and deliver two KARNO Power Modules for testing at Naval Sea Systems Command in Philadelphia.
The company said the award is its largest military contract to date.
The new systems build on Hyliion's existing 800-kilowatt KARNO architecture and are intended to power a wider range of navy vessels and expeditionary missions requiring higher electrical output.
Hyliion said the generators are designed to provide fuel flexibility, high electrical efficiency, and reduced maintenance requirements.
The systems could also help lower logistical demands, extend operational endurance, and provide resilient power while maintaining low acoustic and thermal signatures.
US Strengthens Defense Energy Systems
The award comes as the US continues investing in technologies that improve how military forces generate and manage power in operational environments.
In August, the US Army evaluated GM Defense's Expeditionary Power Integrated Kit during Project Convergence Capstone 6, demonstrating a quieter alternative to conventional generators that reduces acoustic and thermal signatures.
During the same month, Antares secured $470 million to accelerate deployment of factory-built microreactors for US military installations, supporting the Pentagon's push for energy-resilient bases.
In July, Sandia National Laboratories advanced an AI-enabled energy management system designed to stabilize power grids supporting critical infrastructure, including military facilities.
Earlier, in June, the Defense Advanced Research Projects Agency launched a program to develop next-generation rechargeable batteries capable of delivering five to 10 times the energy density of current military battery technologies for future battlefield systems.


