Drone Manufacturers Doubt the Quick Possibility of Abandoning Chinese Parts

 

   "While the Minister of National Defense, Laurynas Kasčiūnas, hopes that Lithuanian manufacturers will abandon parts made in China during the summer, businesses producing drones unanimously respond - for now, it is too difficult to do so.

 

    

 

     Martynas Andriejavas, the sales manager of the drone manufacturer Dangolakis, claims that China has monopolized the market for certain drone parts, while Giedrius Malakauskas, the manager of the arms manufacturer Aam defense, emphasizes that when buying parts from Europe or other friendly countries, the production becomes even several times more expensive and losing out to Chinese competitors in public procurement.

 

    

 

     At the same time, Lukas Ališauskas, the representative of the company "IT logika", which produces drone stations, says that after the establishment of more companies, components will be able to be produced at a competitive price in Lithuania as well.

 

     Prices differ by many hundreds percent

 

     On Friday, representatives of these and dozens of other companies in the sector participated in the Drone Day organized by the Ministry of National Defense (KAM) and the Defense Resources Agency at the Kyviškių airfield in the Vilnius district. Its purpose is to strengthen the ecosystem of Lithuanian drone developers and their users.

 

    

 

     "As a drone manufacturer, as a system manufacturer, we would also like to choose Lithuanian components or from friendly countries, unfortunately, it is almost impossible to get certain components that are not made in China," M. Andriejavas said on Friday.

 

    

 

     According to the head of Aam defense, the cost of components is an important factor in the selection of parts.

 

    

 

     "If Lithuanians would produce for the same price (...), it is clear that companies will choose a slightly more expensive product, but a Lithuanian, European or NATO standard product, but if prices sometimes differ by several hundreds percent, then...", G. Malakauskas added.

 

    

 

     Manufacturers interviewed at the "Drone Day 2024" event said that it would be extremely difficult to sell drones without Chinese components at the moment.

 

    

 

     "For example, the same engine is almost monopolized. China has bought up fossil plants and those metals are in China's hands. It is possible to find them from European manufacturers, but the prices are quite different. We will then face the Public Procurement System, the cheapest production usually wins", explained M. Andriejavas.

 

     It's not just funding that's needed

 

    

 

     Company representatives agreed that higher funding would help encourage Lithuanian manufacturers to choose non-Chinese goods, but emphasized that there are other obstacles.

 

    

 

     "Financial incentives would be really good, as well as loosening some laws or clarifying what can be done, because I think there's a kind of confusion among some manufacturers that we can do it or we can't."

 

    

 

     We take Chinese components, but Lithuanians design, Lithuanians also make the board, and then the product is considered Chinese or Lithuanian?" said L. Ališauskas.

 

    

 

     G. Malakauskas also emphasized that in the absence of clear rules, banks are more cautious about granting loans, trying to protect themselves.

 

    

 

     "There is probably not yet a clear classification of which products are dual-purpose, and this sometimes hinders the movement of finance, (...) banks do not want to start with companies that are not clearly defined, what they do, what they produce and what their licensing rules are", - said the head of Aam defense.

 

    

 

     All representatives of businesses interviewed by BNS agreed - Lithuania is moving in the right direction, and if the processes are accelerated, perhaps the result would be seen sooner.

 

    

 

     "There should be greater communication between state institutions, we have some decisions that are taken at the level of the law, and we have others that are taken at the executive level. We have a little dissonance in these matters, but everything is going in a positive direction, that's right," said G. Malakauskas.

 

    

 

     "The ideas are good, but we don't see those changes yet," emphasized M. Andriejavas.

 

     "There's a breakthrough"

 

    

 

     Minister of Defense Laurynas Kasčiūnas, who participated in the event, hoped that Lithuanian manufacturers would abandon parts made in China during the summer.

 

    

 

     "When will the drones of the (Lithuanian – BNS) manufacturers become more integrated into the Lithuanian armed forces?" There is one point that we are already solving, but we still need some time, we heard that a breakthrough is taking place, (but there is still) some dependence on Chinese details," said the minister.

 

    

 

     Laws do not allow the Lithuanian army to use parts made in China in Lithuanian weapons.

 

    

 

     The one-year exception is made only for equipment that is provided as support to Ukraine, for testing and research purposes.

 

    

 

     By developing the capacity of drones, the Ministry of Defense intends to allocate 10 million Eur to Lithuanian drone manufacturers to develop combat FPV, reconnaissance and other types of drones.

 

    

 

     Of them, 3 million Eur will be allocated to support Ukraine with combat FPV drones. Another 7 million Eur will be dedicated to the production and development of various types of drones.

 

    

 

     The plan for the development of the Lithuanian drone ecosystem presented to the Ministry of Finance this week includes four measures: to establish a drone competence center at the Lithuanian Military Academy, to promote the drone industry in Lithuania, to develop drones in the Lithuanian Rifle Association, to cooperate with non-governmental organizations.

 

    

 

     The State Defense Council decided at the end of March that the drone capability in the Lithuanian army should be ready to operate by 2027."

 

 

 

If the most important Lithuanian Nazi and minister Kasčiūnas switched to a plant-based diet and stopped growing his belly, maybe he himself would flap his tiny hands and fly instead of a Lithuanian drone. That would be enough. Old ladies would be on their knees in the villages. One of the Landsbergis' family would eventually become the real president of Lithuania. And everything would be according to the law, without the hated China.