Investors are betting on the power of cleaner energy.

Lithium-ion battery manufacturer Dragonfly Energy’s stock surged nearly 79% in a matter of hours in early October after the company secured a $300,000 grant, showing how even modest funding can spark major investor confidence in cleaner energy companies. In the span of three weeks, the stock’s price went from $0.28 to a high of $1.97 per share before tapering off, down to $0.90 as of press time but still about three times where it had been on Sept. 22.

The funding comes from the Nevada Tech Hub Funding Program, which aims to support renewable-energy manufacturing in the state.

According to Parameter, the grant will allow the company to upgrade its nearly 400,000-square-foot battery manufacturing facility in South Reno.

Dragonfly Energy plans to use the money to enhance production systems, which should increase output while maintaining quality standards. The company also plans to partner with local colleges to train workers for its operations.

“This award is more than just an investment in Dragonfly Energy; it is an investment in Nevada’s future,” Dragonfly Energy CEO Dr. Denis Phares said in a press release.

Dragonfly Energy batteries are used for industrial solar storage, making the brand’s products essential for renewable energy growth.

Batteries allow solar power to be “banked” for use when the sun isn’t shining, allowing for consistent, reliable energy all day long. This helps make solar power a stable and viable energy source, reducing reliance on dirty fuels.

Though lithium mining is environmentally taxing, lithium batteries are incredibly efficient and have a long lifespan, making them reliable and valuable for advancing cleaner energy solutions. They can also be recycled, unlike dirty fuels.

Their ability to store and release renewable energy on demand helps stabilize grids and supports the transition to more sustainable forms of power.

Dragonfly’s batteries are also used in off-grid homes, powerboats and commercial marine vessels, recreational vehicles, and more. The company has the capability to produce batteries for electric vehicles, though large-scale applications of this technology appear to be in development.

The $300,000 grant is non-dilutive, meaning current shareholders won’t lose value since no new stock will be issued. Dragonfly’s leadership said the funding will strengthen the company’s growth by supporting expansion without adding financial pressure on existing investors.