Skydio will invest $3.5 billion over the next five years to expand domestic manufacturing.

The California-based drone manufacturer expects the move to create over 2,000 new jobs.

This investment aims to reduce U.S. defense reliance on Chinese-made components.

Beijing blacklisted the company in October, cutting off its battery supply.

Skydio plans to open a new U.S. facility five times larger than its current space.

The expansion bolsters domestic production of unmanned aerial systems for the defense sector.