Defense startups developing weapons to counter China have a problem. They depend on the country for parts.
China is the dominant supplier of batteries, motors, sensors, rare-earth materials and other key components needed by U.S. defense companies. The industry’s outsize reliance on China for materials to build everything from drones to ships and missiles has become an untenable reality in Washington.
Defense-tech startups face particular challenges building without the most affordable and readily available parts, according to industry executives and national-security experts.
“We don’t want companies dependent on China. That’s a national security risk. We see that, and we are very clear about that while following the requirements in law,” said Trent Emeneker, a project manager and contractor with the Defense Innovation Unit, which helps the military buy startup technology.