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China’s Rare Earth Export Restrictions: What They Mean for the U.S. Drone Industry

  • China's recent decision to restrict exports of rare earth elements poses new challenges for the U.S. drone industry.
  • The export controls target materials essential for manufacturing high-performance magnets and batteries for commercial drones, raising concerns about supply chain stability and production costs.
  • The restrictions have led to immediate uncertainty as shipments from China are paused and approval for export licenses may take up to two months.
  • The prices of these rare earth materials have already started to rise, which will likely result in increased costs for drone manufacturers and customers.

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