Nuburu stock surges after strategic drone joint venture agreement

Investing.com -- Nuburu Inc (NYSE:BURU) stock surged 25% in premarket trading Wednesday after the blue-laser technology company announced a Strategic Framework Agreement to establish a joint venture focused on advanced drone systems.

The agreement, signed with Nuburu Defense LLC and Maddox Defense Incorporated, will create a JV company controlled by Nuburu Defense that will develop, manufacture, and deploy drone systems for military and commercial applications. The parties estimate the NATO UAV defense market opportunity at approximately $7-$10.3 billion annually.

According to the announcement, the joint venture anticipates reaching approximately $100 million in annual revenue by the end of 2028 and roughly $165 million cumulative across 2026-2028. The parties intend to execute a definitive Joint Venture Agreement on or before December 15, 2025, establishing the JV Company under Italian law as a European-based manufacturing and research hub.

Under the anticipated terms, Nuburu Defense will contribute up to $10 million in capital funding, while Maddox Defense will contribute eligible assets, intellectual property, and personnel. The JV will utilize rapid-manufacturing pods capable of deployable field fabrication through 3D printing, modular avionics, and scalable commercial components.

"This framework agreement marks another pivotal step forward as NUBURU expands its presence across the defense and commercial sectors," said Alessandro Zamboni, Executive Chairman and Co-CEO of NUBURU.

The collaboration will integrate complementary technologies for NATO-authorized programs while maintaining full U.S. export-control compliance, with all systems developed in accordance with applicable U.S., EU, and NATO export-control laws.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.