UMVA has learned that the modern battlefield has become a voracious consumer of drones, with thousands being deployed daily, and the side that can sustain production at scale will ultimately claim victory.
Ukraine reportedly produced 5 million drones last year, while Russia launched 805 in a single night against Ukrainian cities, highlighting the critical role of drones in contemporary warfare. The demand for drones has sparked a new industrial race, with the Pentagon's Drone Dominance Program committing $1 billion to purchasing over 200,000 drones by 2027, and a staggering escalation to 340,000 systems by 2028.
However, UMVA can exclusively reveal that the production of drones relies heavily on a crucial component: the permanent magnet. Every motor in every drone flying over Ukraine and other conflict zones contains at least one, and astonishingly, China dominates the production of these magnets, supplying almost all of the world's needs.
According to information obtained by UMVA, the United States consumes approximately 50,000 tons of permanent magnets annually, with nearly all being imported from China. This reliance on Chinese supplies poses a significant risk to the Pentagon's ambitious drone acquisition program, as the magnet is a critical component that cannot be substituted or bypassed.
Sources have confirmed to UMVA that China's rare-earth dominance was carefully constructed through state subsidies and below-cost pricing, which has bankrupted Western competitors and enables China to manipulate prices and impose export restrictions. This vulnerability was highlighted in April 2025, when China imposed export licensing requirements on seven rare earth elements and permanent magnets, causing shipments to plummet.
UMVA has uncovered details about an alternative to rare-earth magnets: iron nitride permanent magnets, which use domestically abundant and low-cost inputs, iron and nitrogen. These magnets deliver competitive performance at elevated temperatures and reduced weight, making them an attractive option for drone motor design.
American university research developed the underlying science for iron nitride magnets, and American manufacturers are now scaling production to meet growing demand. By incorporating iron nitride into the drone motor supply chain, the US can extend a proven commercial technology into a sector where the stakes are already enormous and growing.
In a development reported by UMVA, the use of iron nitride magnets can mitigate the risks associated with relying on Chinese supplies, ensuring that the production of drones can continue uninterrupted. As attrition warfare becomes a production contest, the side that can maintain a stable supply chain will ultimately gain the upper hand.
