China’s recent export restrictions on gallium, germanium, graphite and rare earth elements significantly affect the global drone industry. Manufacturers in the US, EU and Germany depend on these materials for motors, sensors and electronic systems.

What is affected

• Gallium & Germanium: critical for RF components and thermal imaging optics.
• Graphite: essential for lithium-ion batteries and high-discharge cells.
• Rare Earths: indispensable for NdFeB magnets used in BLDC motors.
• UAV components: additional export controls on flight controllers, motors and navigation systems.

Impact on the drone industry

• Propulsion: magnet shortages may delay production and increase costs.
• Sensor payloads: limited germanium optics raise thermal camera prices.
• Energy supply: battery anode uncertainty complicates production planning.
• Electronics: GaAs/GaN-based RF modules show higher price volatility.

Regional differences

United States: partially buffered by domestic material programs but still dependent on Chinese refining.

EU/Germany: The Critical Raw Materials Act aims to reduce single-country dependency below 65% by 2030, but short-term relief remains limited.

Recommendations for manufacturers

• Establish dual-sourcing strategies for magnets and motors.
• Evaluate alternative IR optics such as chalcogenide glass.
• Shift supply chains to non-Chinese graphite sources.
• Maintain traceability for REEs, gallium, germanium and graphite.
• Leverage EU funding for critical raw material resilience.

Conclusion: China’s restrictions are strategic in nature and accelerate the need for Western supply chain diversification. For European drone makers, this challenge also presents a chance to build stronger domestic capabilities in propulsion, battery and sensor technologies.