The Pentagon is facing significant challenges in scaling up its domestic drone production to match the output currently achieved by Ukraine, a senior U.S. defense official said July 27. Travis Metz, deputy director and chief operating officer of the Defense Innovation Unit, which oversees the Pentagon’s Drone Dominance Program, acknowledged that the United States remains in the early and most difficult phase of developing a competitive drone manufacturing industry.

Ukraine is projected to produce between 6 million and 7 million small first-person-view attack drones this year, averaging around 500,000 per month. In contrast, the Pentagon’s $1.1 billion program had cumulatively ordered just under 200,000 drones by February, highlighting a significant gap in production volume.

Metz pointed out that moving from zero to 200,000 drones is a steep hurdle and that scaling up production will become easier once the necessary domestic manufacturing capacity is established. However, recent policy changes have added complexity to this effort. In an effort to secure and expand the domestic supply chain, the U.S. government implemented stricter rules requiring military drones to be built with American-made parts. A revised supply chain framework released July 23 emphasizes the goal of achieving a “wholly domestic” small unmanned aircraft system supply chain.

The new regulations prohibit the use of certain foreign components, such as Chinese-made brushless motors and battery packs, which had been commonly used in earlier phases. Metz estimated that the majority of drones procured previously likely included Chinese motors. He acknowledged sourcing components like semiconductors remains a considerable challenge beyond the drone program itself.

Despite these obstacles, Metz expressed confidence in the long-term prospects of the U.S. drone industry, stating he expects the country to eventually rival Ukraine’s production capabilities and become a global leader in this sector.

The Pentagon is also pursuing collaboration with Ukrainian companies to leverage their battlefield expertise. Six Ukrainian drone manufacturers invited to the upcoming “Gauntlet II” competition at Fort Carson, Colorado, are either entering or moving toward joint ventures with U.S. manufacturers. Ukrainian companies such as F-Drones and General Cherry have formed partnerships with American firms, including Ohio-based Ukrainian Defense Drones and New Hampshire’s Wilcox Industries, with plans to establish production facilities in the United States. Metz said that localizing production is a prerequisite for future contracts, aiming to transform Ukraine’s operational knowledge into American manufacturing capacity and reduce reliance on imports.

Overall, the United States is navigating a complex transition toward building a robust and secure domestic drone industry, balancing the need for rapid scale-up with stringent supply chain requirements.