Ukraine localises production of drone components
The Ukrainian defence industry is facing serious challenges due to China's restrictions on the export of electronics for drones and other weapons.
Beijing is systematically blocking the supply of key components — engines, batteries, controllers — even through intermediaries in allied countries.
This threatens production rates, which already supply the front lines with thousands of units of equipment every month.
UAV manufacturers rely on Chinese components for 60–80% of their needs because they are cheap and available in large quantities. At the same time, localisation in Ukraine reaches only 40% for bodies and batteries, and 15–20% for complex elements.
Experts emphasise that this dependence hinders not only defence but also export potential, estimated at $35–40 billion.
Chinese components are also found in Russian weapons, despite Beijing's claims of neutrality. Restrictions were introduced in September 2024 to undermine Ukraine's successes on the front line — drones have become a key factor in destroying enemy logistics.
Manufacturers are looking for workarounds through Europe and the US, but this increases costs.
To overcome the crisis, Ukraine is increasing its own production. Under favourable conditions — grants, incentives, loans — companies will cover 50–70% of demand in six months.
The state has launched the MOE and Brave1 marketplaces, as well as the ‘Made for Victory’ initiative with grants of up to UAH 8 million.
