The company Skydio, the largest drone manufacturer in the USA and a supplier to the Ukrainian army, faced a supply chain disruption after Beijing imposed sanctions against the company, including banning Chinese groups from supplying it with critical components, writes Financial Times. Skydio is urgently seeking alternative suppliers and has turned to the Biden administration for help. "This is an attempt to eliminate the leading American drone manufacturing company and increase the world's dependence on Chinese drone suppliers," is stated in the appeal to officials.
China's sanctions, imposed on October 11, affected several American companies in retaliation for Washington's approval of the sale of strike drones to Taiwan. Skydio recently won a contract with the Taiwanese fire agency.
As FT writes, citing sources familiar with the situation, Chinese authorities pressured Skydio's suppliers, including Dongguan Poweramp—a subsidiary of the Japanese TDK, which produces batteries for drones, and demanded they terminate contracts with the American company.
On Wednesday, Skydio reported that no new suppliers are expected until spring. Skydio is negotiating with companies in Asia, including in Taiwan.
In the past, China has restricted the supply of rare earth metals to exert pressure on other countries, and recently warned Japan that it would block the supply of critical minerals if Tokyo implements export control measures insisted upon by Washington.
In recent years, Beijing has imposed sanctions on several American defense companies, including Lockheed Martin, Raytheon, Boeing, and Anduril Industries, which produces some of the strike drones supplied to Taiwan.
Skydio stated that it has sent over 1,000 drones to Ukraine for intelligence gathering and reconnaissance. The drones were also used to document Russian war crimes. Its latest model, X10, became the first American drone to pass Ukrainian electronic warfare tests, meaning they are difficult to jam, and Kyiv has requested thousands of such drones.