Unexpected Restrictions Force Skydio to Ration Battery Supply

Prominent American drone manufacturer Skydio was recently hit with sanctions from the Chinese government, forcing it to limit battery distribution. These constraints follow Skydio’s deal to sell drones to the Taiwanese National Fire Agency.

The sanctions prevent Chinese companies from working with or supplying components to Skydio. The American drone maker only sources a few parts through China, so it is still able to manufacture and distribute its product. However, it will be taking the “drastic step of rationing batteries to one per drone,” Skydio stated, and delivering the rest when it is able.

Skydio CEO and co-founder Adam Bry clarified that China sanctioned his firm for its recent sale to the Taiwanese National Fire Agency. This is Skydio’s only customer in Taiwan, though it is also currently supplying drones to the Ukrainian military.

Officials have also suggested that the restrictions could be a result of the recent US limitations on DJI imports. DJI, a well-known Chinese drone company, is suing the American government after being added to the Pentagon’s warning list.

Bry published a blog post in response to the sanctions, claiming that the Chinese government is using “supply chains as a weapon to advance their interests over ours.”

“This is a clarifying moment for the drone industry,” expressed Bry. "This is an attempt to eliminate the leading American drone company and deepen the world’s dependence on Chinese drone suppliers."

China sanctioned two other US-based companies in October. These include military shipbuilder Huntington Ingalls Industries and military drone manufacturer Edge Autonomy Operations. All three of the sanctioned firms’ “movable and immovable properties, and other kinds of assets within China, shall be frozen.”

Skydio is now reportedly attempting to get assistance from the US and Taiwan to fill supply chain gaps.

FMI: www.skydio.com