Topline
Skydio, the largest American drone manufacturer, announced Wednesday it is being forced to ration batteries for its customers due to supply constraints caused by the Chinese government’s sanctions—which the firm described as an effort to “eliminate” it and increase the world’s reliance on Chinese-made drones.
Skydio CEO and co-founder Adam Bry said the sanctions show that the Chinese government “will use … [+]
Key Facts
In a blog post, Skydio’s CEO Adam Bry said the company’s “battery supply will be reduced for the next few months” as a result of the sanctions, as batteries were “one of the few components” the company was still sourcing from China.
To deal with the supply chain issue, Bry said Skydio will have to take the “drastic step of rationing batteries to one per drone” and to compensate, the company will support and warranties for drones delivered “with less than a full complement of batteries.”
Bry said China sanctioned his company for selling drones to Taiwan—noting the Taiwanese National Fire Agency is its only customer in the country—but said Skydio was “proud to support critical infrastructure operators, first responders, and allied militaries.”
The blog post sharply attacked the Chinese government, saying the sanctions show that the Chinese government “will use supply chains as a weapon to advance their interests over ours.”
Bry also accused the Chinese government of attempting to “eliminate the leading American drone company” and increase the “world’s dependence on Chinese drone suppliers.”
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Key Background
Skydio was one of three American companies sanctioned by China earlier this month, along with military shipbuilder Huntington Ingalls Industries and military drone maker Edge Autonomy Operations. While announcing the sanctions, the Chinese foreign ministry mentioned the U.S. government’s announcement of “substantial military assistance” for Taiwan—which China claims is a part of its territory. The announcement said the companies’ “movable and immovable properties, and other kinds of assets within China, shall be frozen,” as a result of the sanctions. Bry’s name was also included in a list of 10 sanctioned “senior executives” along with Skydio’s Asia–Pacific General Manager Tom Moss.
News Peg
According to the Financial Times, Skydio’s list of customers includes the Ukrainian military, and the company has sent over 1,000 of its drones to Ukraine to aid with gathering intelligence in its ongoing war with Russia and record instances of war crimes by the Russian military. Skydio’s X10 drone—which is affected by the battery rationing—is reportedly hard to jam, and Ukraine has sought to acquire thousands of them.
Tangent
The world’s largest drone maker, DJI, filed a lawsuit against the U.S. Department of Defense earlier this month after being designated as a “Chinese military company.” In its lawsuit, DJI has argued that it is “neither owned nor controlled by the Chinese military,” and the Pentagon’s move is “unlawful and misguided.” DJI argued the listing has led to lost business deals and caused it to be “stigmatized as a national security threat.” It is unclear if the Pentagon’s blacklisting of the Shenzhen-based company is linked to China’s sanctions against Skydio.
Further Reading
Chinese sanctions hit US drone maker supplying Ukraine (Financial Times)