According to the report, China is the dominant supplier of batteries, motors, sensors, rare-earth materials and other key components needed by US defense companies, and contractors are concerned over this reliance, as it poses a national security risk. At the same time, defense-tech startups face challenges building without affordable and readily available parts.
Companies, in turn, emphasized that breaking up with China is necessary to save business, although it is costly and may put them at a stand, the report said.
"There’s a lot of lip-flapping about national security resilience manufacturing. But there is no money for us to do this," LAND Energy founder Scott Colosimo was quoted by the newspaper as saying.
The media also reported that many startups are trying to overcome the challenge by implementing a variety of strategies, including relocating production to Southeast Asia, sourcing spare parts from Mexico, assembling components in the United States, and using 3D printing to create duplicates.