Skydio forced to ration batteries due to Chinese sanctions

In a note to customers made public through the company’s blog, Skydio CEO Adam Bry announced the need to ration batteries in the wake of Chinese sanctions he says are focused on “eliminating the leading American drone company and deepening the world’s dependence on Chinese drone suppliers.”

On October 11, China rolled out sanctions on three American companies for supplying Taiwan, which China claims as its own. Skydio was included in these sanctions for selling its American-made drones to the nation; Bry says its only customer on the island is the Taiwanese National Fire Agency.

While the drones themselves are manufactured in the United States, the company’s main selling point to potential customers is that not all of its supply chain is removed from China. The drones’ batteries still rely heavily on the nation, and with the new sanctions in place, they have lost access to their supplier in the nation.

“In order to continue delivering X10s and supporting our customers, we have to take the drastic step of rationing batteries to one per drone,” Bry said in his note to customers. “It pains me to do this. We are extending the software license, warranty, and support term for all drones fulfilled with less than a full complement of batteries by the length of time it takes us to deliver all batteries in the kit.”

Bry says that the company has already been working on getting new suppliers online to replace its Chinese source, but does not expect that to take place until next year.

While Skydio struggles with Chinese sanctions, its main competitor, DJI, is fighting for its survival as the US continues to restrict its drone usage and access to the United States. The recent release of the Chinese drone maker’s Air 3S product was followed by import delays due to higher-than-expected scrutiny by customs agents. This is something you could expect to continue with future drone releases.

A ban on all DJI drones from the U.S. also recently passed the U.S. House of Representatives after being removed from a funding bill earlier in the year.

DJI is the leading drone maker in the world for both consumer and enterprise drones, but thanks to many nations’ anti-China drone policies, Skydio is catching up.

Skydio exited the consumer market last year to focus on the defense and enterprise markets. The company’s X10 drone has reportedly seen great success in Ukraine thanks to its being harder to jam.

While China’s sanctions are officially due to the U.S.’s approval of selling attack drones to Taiwan, you could imagine the nation is fighting against restrictions of its drone giant too.