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USA Faces Hurdles in Drone Manufacturing Due to Reliance on Chinese Components

A recent report from the Department of Commerce highlights that over 70% of lithium-polymer batteries and over 60% of certain drone-grade semiconductors used in U.S. production lines are imported from China or Chinese-affiliated companies.

Sara Jones by Sara Jones
April 22, 2025
in Business, Markets, News, Technology
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USA Faces Hurdles in Drone Manufacturing Due to Reliance on Chinese Components

PHOTO CREDITS : Business Standard

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In a striking revelation that underscores the depth of global supply chain interdependence, the United States is facing significant roadblocks in producing military and commercial drones due to its continued reliance on critical components sourced from China. The issue has sparked concerns among lawmakers, defense analysts, and industry leaders about national security vulnerabilities and the resilience of American manufacturing.

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A Supply Chain Snag with Strategic Consequences

Despite years of efforts to decouple from Chinese technology providers, U.S. drone manufacturers remain dependent on a range of Chinese-made components, including high-performance batteries, specialized chips, camera systems, and rare earth elements essential for sensors and motors.

A recent report from the Department of Commerce highlights that over 70% of lithium-polymer batteries and over 60% of certain drone-grade semiconductors used in U.S. production lines are imported from China or Chinese-affiliated companies. This dependence poses a significant risk to both defense readiness and domestic innovation, particularly as geopolitical tensions between Washington and Beijing continue to simmer.

Pentagon’s Growing Concern

“It’s not just about commercial drones anymore—these components are foundational to our defense systems, surveillance capabilities, and even battlefield logistics,” said Gen. Marcus Ellison (Ret.), a senior advisor at the Center for Strategic Technologies. “If access is restricted, the impact on national security could be immediate and severe.”

US Drone Makers Struggle To Break Free From Chinese Parts Dependency

The Department of Defense has reportedly struggled to fulfill certain drone procurement contracts due to constraints on component availability, with some classified programs experiencing delays of up to six months.

Industry Struggles to Adapt

Major American drone companies such as Skydio, AeroVironment, and even defense contractors like Lockheed Martin and Northrop Grumman have all signaled delays and higher costs linked to sourcing alternatives for key Chinese parts.

“We’re actively investing in domestic supply chains and partnering with allies, but the shift is not easy or cheap,” said a spokesperson for Skydio, one of the few U.S.-based drone manufacturers. “China simply dominates this space right now, particularly in battery tech and miniaturized optics.”

Bipartisan Push for Technological Independence

Congress is now pushing forward with renewed urgency. A bipartisan bill, the American Drone Security and Innovation Act, introduced earlier this month, seeks to incentivize U.S. production of critical drone components and ban the use of Chinese-made parts in government-contracted UAVs within five years.

“This is a wake-up call,” said Senator Maria Lopez (D-CA), one of the bill’s sponsors. “We cannot afford to have our most advanced technologies relying on potential adversaries.”

Chinese Drones Banned by Tech Supplier to U.S. Police - Bloomberg

A Long Road Ahead

While the federal government has already allocated over $1.5 billion in the past two years to boost domestic chip and battery production, experts caution that rebuilding these supply chains will take years. In the meantime, the U.S. drone sector remains entangled in a global web of dependencies that it cannot quickly escape.

For now, American technological supremacy in the skies may hinge not on innovation alone, but on how swiftly it can untangle itself from a manufacturing reliance that was decades in the making.

Tags: chinaChina newsChina updatestech newstechstoryunited Statesunited States newsUnited States updatesUSAUSA Faces Hurdles in Drone Manufacturing Due to Reliance on Chinese ComponentsUSA newsUSA updates
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