Five months after the US government banned all foreign-made drones, US drone company Skydio announced a $3.5 billion investment that will expand US drone manufacturing, including components, over the next five years.
At the end of April, Skydio – the largest US drone manufacturer – announced an investment to expand its factory, add jobs, and help build up a US drone supply chain. As an American drone pilot, Skydio’s announcement is a sign of hope, yes – but it’s also a key example of why the FCC ban on all foreign-made drones is so devastating for aerial creators.
Most US drone companies don’t offer consumer drones
Skydio exited the consumer drone market in 2023 and no longer sells off-the-shelf drones for photographers like myself. Instead, Skydio shifted to drones for first responders and the military, as well as quadcopters for industrial uses. Most US brands don't offer consumer drones, instead focusing on industrial, military, agricultural, and Hollywood-level drones.
Article continues belowSkydio hasn’t announced a return to the consumer drone market amid the drone ban – which prevents all foreign-made drones, not just DJI, from gaining the FCC authorization needed to sell in the US. (Drones that already received FCC approval remain available to buy and are safe to fly).
However, as part of the announcement, the company’s CEO does mention the “civilian drone market” which encompasses categories like enterprise drones – which Skydio already offers – as well as consumer drones. “Skydio has proven that American companies can compete and win in the civilian drone market against products from our adversaries,” Skydio Co-Founder and CEO Adam Bry said.
Whether that mention of civilian drones may include consumer drones in the future has yet to be seen, as Skydio hasn’t made any official indication of a return to the consumer market.
Many critical drone parts aren’t made in the US
Skydio's $3.5 billion investment in US manufacturing is a move that will build a manufacturing facility five times bigger than its current space and create more than 2,000 new jobs within the company.
However, a key part of Skydio’s announcement is SkyForge, a program that aims to help expand US manufacturing of critical drone parts and makes up roughly $1 billion of the investment. The program invites other suppliers to work with Skydio to help grow the US supply chain.
The US supply chain is one of the key hurdles to building American-made drones. Both the motors and batteries inside a majority of drones originate from China. Around 90 percent of the magnets inside drone motors, for example, are from China, while China also makes 99 percent of the Li-ion batteries used in consumer electronics. The few US suppliers that exist tend to operate on a smaller scale and require more lead time, according to The Next Web.
Skydio is also a key example of why supply chain matters – last year, in response to tariffs, China blocked several drone companies, which left Skydio temporarily unable to secure batteries for its drones.
Building up US drone manufacturing will take time – and money
I’m ecstatic to see a US drone company create 2,000 jobs – plus the move is also expected to help create 3,000 additional jobs across the supply chain. But Skydio’s announcement is also a reminder that American drone manufacturing won’t happen overnight, and in the meantime, the drone tech accessible to US drone pilots like myself will stall.
Skydio’s investment, for example, is expected to be completed in five years – and that, again, includes no mention of returning to the consumer drone market.
Five years – if a US-made consumer drone even comes by then – is a long time in tech years. For example, five years ago, DJI was making the Mini 2, which had a 1/2.3-inch sensor and only downward obstacle sensing. Fast forward five years, and the DJI Mini 5 Pro offers a 50MP one-inch sensor, omnidirectional obstacle sensing, a longer battery life, improved transmission technology, and longer flight times. That’s the level of advancement that can happen in just five years.
Skydio’s investment isn’t the only spark of hope for US drone pilots. DJI has filed a lawsuit over the ban, which is still in progress. In March, Chinese drone brand SkyRover announced that it was “exploring” US manufacturing.
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