In response to newly imposed Chinese sanctions, U.S. drone manufacturer Skydio has informed its customers of plans to temporarily ration battery supplies. These sanctions, affecting Skydio’s battery sourcing, were triggered by the company’s sale of drones to Taiwan’s National Fire Agency. Despite the setback, Skydio remains committed to its current partnerships and is adjusting its supply chain operations to address the disruption.
The situation underscores broader concerns about supply chain vulnerabilities in the drone industry. U.S. lawmakers and allies have increasingly urged drone users to consider alternatives to Chinese-made equipment, emphasizing supply chain reliability and cybersecurity. Given China’s dominant role in drone manufacturing, dependence on foreign technology for critical functions has raised concerns. The restrictions on Skydio highlight the urgent need for resilient supply chains.
Temporary Battery Rationing Due to Limited Supply
The sanctions have restricted Skydio’s battery access. While Skydio has invested in domestic production and non-Chinese suppliers, it acknowledged that “batteries are one of the few components we have not yet moved out of China.” Skydio’s CEO, Adam Bry, noted, “We have a significant stock of batteries on hand, and our team is developing alternative suppliers. However, we don’t expect new sources to be available until spring of next year.”
To maintain customer service, Skydio will temporarily limit battery distribution to “one per drone” for the next few months. Understanding the inconvenience, Skydio has promised to extend “the software license, warranty, and support term for all drones fulfilled with fewer than the full battery kit for the length of time it takes to deliver the remaining batteries.”
Drone Industry Supply Chain Vulnerabilities
The disruption illustrates a broader issue in the drone industry, where sourcing critical components has become challenging for manufacturers attempting to comply with NDAA guidelines while avoiding Chinese manufacturing. Bry called this situation “a clarifying moment for the drone industry,” stating, “China will leverage supply chains to further its interests.”
Chinese companies have historically dominated global drone production. However, recent shifts by lawmakers and industry leaders have encouraged U.S. companies to build a diversified supplier network to support essential infrastructure and defense operations.
Collaborating to Strengthen Future Supply Chains
Skydio has committed to sharing its progress in sourcing batteries outside of China with other manufacturers. Bry emphasized that cooperation among Western drone companies could help the industry move away from its “dangerous dependency” on Chinese suppliers.
The company remains dedicated to minimizing the impact on its customers while working toward a more resilient supply chain. Skydio’s CEO encouraged customers to reach out with questions and expressed gratitude for their support during this transition.
