Why the US is losing the drone war

The U.S. defense industry faces significant hurdles in pivoting toward the rapid, low-cost drone technology currently defining modern warfare. An institutional bias toward high-end, reusable systems—exemplified by using multimillion-dollar missiles to intercept inexpensive drones—prevents the military from embracing the cost-effective, disposable models favored by adversaries. Furthermore, rigid procurement processes and the "Valley of Death" delay innovation, while strict mandates against Chinese-made components, such as rare earths and batteries, inflate production costs and complicate supply chains. Unlike the urgent, high-stakes environment in Ukraine, where rapid adaptation is essential, the U.S. military operates in a peacetime context that lacks the necessary demand signal to incentivize small-scale, agile contractors. Stacie Pettyjohn, director of the defense program at the Center for a New American Security, highlights how these structural and strategic mismatches keep the U.S. lagging behind in the global drone arms race.