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.