Skydio, the US’s largest drone maker and a supplier to Ukraine’s military, faces a supply chain crisis after Beijing imposed sanctions on the company, including banning Chinese groups from providing it with critical components. Skydio is rushing to find alternative suppliers after Beijing’s move, which also blocks battery supplies from its sole provider, said people familiar with the situation.
China’s sanctions, imposed on October 11, hit several US groups, including privately held Skydio, in retaliation for
. Skydio had recently won a contract with Taiwan’s fire agency. Beijing imposed the sanctions before Skydio had succeeded in finding alternative suppliers. One person familiar with the situation said Chinese authorities visited Skydio’s suppliers, including Dongguan Poweramp — a subsidiary of Japan’s TDK that makes drone batteries — and ordered them to sever ties. Skydio on Wednesday told its customers it was rationing the number of batteries supplied with
because of the Chinese move and that it did not expect to have new suppliers until spring.
