US drone maker Skydio faces battery squeeze after Chinese sanctions
Reading Time: 2 minutesAmerica’s supply chain vulnerabilities were on full display Thursday after drone manufacturer Skydio told customers it was facing a battery squeeze after being hit with sanctions from China.
‘This is an attempt to eliminate the leading American drone company and deepen the world’s dependence on Chinese drone suppliers,’ Skydio CEO Adam Bry said in a letter to customers first reported by the Financial Times.
The company, which provides drones to Ukraine’s 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; one of the most critical components, batteries, are still sourced in China. As a result of the sanctions, which bar Chinese companies from doing business with Skydio, customers will be limited to one battery per drone, Skydio told customers.
While Skydio has a ‘substantial stock’ of batteries on hand, it doesn’t anticipate new sources coming online until spring of next year. In the meantime, the company is extending the software license, warranty, and support term for orders affected by the battery ration by the length of time it takes for the full complement of batteries to be delivered.
Skydio is America’s largest drone manufacturer and operates an enterprise-only business after shutting down its consumer drone business in 2023. It has sent thousands of its drones to Ukraine to aid that country’s war-fighting efforts.
‘This is a clarifying moment for the drone industry,’ Bry said. ‘If there was ever any doubt, this action makes clear that the Chinese government will use supply chains as a weapon to advance their interests over ours.’
The drone maker has sought help from the Biden administration and has been in touch with Taiwan’s vice president Hsiao Bi-khim as it faces this crisis, the Financial Times reported. The sanctions, which were imposed on October 10 and included two other companies, were reportedly imposed in retaliation for the U.S. government’s announcement that it would provide additional military assistance for Taiwan.
Ten executives were also sanctioned, including Bry and Skydio’s Asia-Pacific general manager Tom Moss.
This isn’t the first time the U.S. and China have traded jabs over drone technoloy: DJI, the world’s largest drone maker, filed a lawsuit against the U.S. government earlier this month over being designated a ‘Chinese military company,’ claiming the designation is ‘unlawful and misguided.’
Ref: techcrunch
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