The US Army has signed an approximately $80 million contract to establish a production line for electric drone motors in Alabama, according to reports. The move aims to reduce dependence on China, which controls roughly 98% of global production capacity for rare-earth magnets used in drone motors. The production line is expected to be operational by August 2027.
The US Army contract, reported by the 301 channel, aims to establish a dedicated production line for electric drone motors in Alabama, targeting a reduction in reliance on Chinese rare-earth magnets. The Pentagon notes that tens of thousands of components across roughly 1,900 US weapons systems still depend on raw materials processed in China. The new line is part of a broader effort to strengthen domestic defense industrial independence, with operational launch set for August 2027.
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