US banned DJI but China controls 90% of rare earth magnets and 99% of drone batteries needed to replace it

"Skydio's $3.5 billion investment over five years aims to expand US drone production significantly, creating over 2,000 direct jobs and 3,000 supplier jobs. This initiative, called SkyForge, is designed to build a domestic component supply chain to reduce reliance on foreign manufacturers."

"The ban on new DJI drones was triggered by the 2025 National Defence Authorisation Act, which required a formal review by a US national security agency. The failure to complete this review by the deadline led to DJI's addition to the FCC's Covered List, blocking new products from being imported or sold."

"Despite the ban, existing DJI products in the US remain legal to fly, and no grounding order or remote disablement has been issued. However, the closure of the pipeline for new DJI models and components poses significant challenges for the market."

In December 2025, the US banned new DJI drones, which held 80% of the American market. This ban resulted from a lack of a formal review by a national security agency. Skydio announced a $3.5 billion investment to expand US drone production and create a domestic supply chain. The initiative, named SkyForge, aims to build a factory five times larger than its current one and generate thousands of jobs. However, establishing a supply chain to match DJI's scale will take years.

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