Skydio, America’s largest drone manufacturer, is facing significant challenges due to sanctions imposed by China, which are impacting its supply chain. In a letter to customers, Skydio CEO Adam Bry highlighted that the sanctions aim to eliminate the leading American drone company and increase reliance on Chinese suppliers. While Skydio manufactures its drones in the U.S., it still sources critical components, particularly batteries, from China.
As a result of the sanctions, Skydio has informed customers that they will be limited to one battery per drone. Although the company has a substantial stock of batteries, it does not expect new supply sources to come online until spring of next year. To mitigate the impact on customers, Skydio is extending the software license, warranty, and support terms for affected orders.
Skydio, which had previously shut down its consumer drone business in 2023, supplies drones to military and emergency services, including Ukraine’s military and Taiwan’s National Fire Agency. Bry emphasized that this situation underscores the vulnerabilities in the drone industry and the potential for the Chinese government to leverage supply chains as a geopolitical weapon.
In response to the sanctions, Skydio has reached out to the Biden administration and has communicated with Taiwan’s vice president for assistance. The sanctions, which were implemented on October 10, target several companies and executives, including Bry and Skydio’s Asia-Pacific general manager, Tom Moss. This development is part of a broader tension between the U.S. and China over drone technology, highlighted by DJI’s recent lawsuit against the U.S. government for being designated a "Chinese military company."
