Speaker: Bohdan Kostiuk, Defense Analyst, Eastern Circles

Moderator: Anastasiya Shapochkina, President of Eastern Circles

Drones have replaced artillery as the most lethal weapon of war in Ukraine, causing 80% of casualties on both sides. For Ukraine, FPV drones became the weapon of choice because of their accessibility, giving Ukraine a competitive edge with Russia.

The EU and NATO see Russia as a threat to their security. But behind Russia’s ability to fight is China, with its limitless capacity to arm Russia with dual use products and support the Russian military-industrial complex. This alliance undermines Western defense autonomy, because the European defense industry depends on Chinese critical components. 

Take the supply chain of the first-person view (FPV) drones. In or outside of Ukraine, FPV makers depend on Chinese components. For instance, 80% of neodymium magnets, used in motors of drones, planes, helicopters and missiles, are made in China, which had crushed Western competitors with speed, cost and scale.

Ukraine has sought to produce FPVs after the biggest Chinese drone-maker DJI stopped direct sales and restricted spare parts exports to Ukraine since 2022. The Ukrainian company Vyriy Drones claims to have produced 1000 FPVs using only Ukrainian components, but critical dependencies remain on motors, magnets, frames, cameras, and batteries.

 Western efforts to counter Chinese dominance have failed. Swedish lithium batteries producer Northvolt went bankrupt. In 2025, Europe has announced plans to develop rare-earths in the Norwegian town of Ulefoss, but the business model remains to be tested. Europe’s plan to bring home rare-earth production includes investment in extraction projects, cutting red tape, and building production capacities in Western allied countries such as Ukraine. EU R&D is looking into alternatives, such as tetrataenite for magnets, a meteorite-derived iron-nickel mineral with neodymium-level strength, greater heat resistance, and abundant raw materials.