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Vulnerabilities in the entire U.S. supply chain came to light Thursday after drone maker Skydio informed customers it was facing battery stress after being hit with sanctions from China.
“This is an attempt to eliminate America’s leading drone company and deepen the world’s dependence on Chinese drone suppliers,” Skydio CEO Adam Bray said. In a message to customers First reported by the Financial Times.
The company, which supplies drones to the Ukrainian military and Taiwan’s National Fire Agency, manufactures its products in the United States but still relies on a global supply chain for many of its components; Battery sourcing is still one of the most important components in China. Skydio told customers that as a result of the sanctions, which prevent Chinese companies from doing business with Skydio, customers will be limited to one battery per drone.
While Skydio has a “large stock” of batteries on hand, it doesn’t expect new sources to come online until spring next year. In the meantime, the company is extending the software license, warranty, and support duration for orders affected by battery quota through the length of time it takes to deliver the full set of batteries.
Skydio is America’s largest drone manufacturer and operates an enterprise-only business after shutting down its commercial drone business in 2023. It has sent thousands of its drones to Ukraine to aid combat efforts in that country.
“This is a clarifying moment for the drone industry,” Bray said. “If there was any doubt, this action makes clear that the Chinese government will use supply chains as a weapon to advance its interests over ours.”
The Financial Times reported that the drone maker sought help from the Biden administration and was in contact with Taiwan’s Vice President Hsiao-Pei-chime as it faces this crisis. PenaltiesIt was imposed on October 10 and included two other companies, and was reportedly imposed in response to the US government’s announcement that it would provide additional military aid to Taiwan.
Ten executives were also sanctioned, including Tom Moss, Skydio’s general manager for the Asia-Pacific region.
This isn’t the first time the United States and China have traded criticism over drone technology: DJI, the world’s largest drone maker, filed a lawsuit against the US government earlier this month over its designation as a “Chinese military company.” “, claiming that this classification is “illegal and misleading.”
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