Manufacturing American Drones At Scale | Olaf Hichwa, Neros

Relentless 1h33 4 min #38
Manufacturing American Drones At Scale | Olaf Hichwa, Neros
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Summary

  • Neros is an American drone company founded by Olaf Hitchwa and Saurin, two former competitive FPV (first-person view) drone racers who pivoted from hobbyists to defense manufacturers after witnessing the war in Ukraine firsthand. Their mission is to build a fully American-made FPV drone supply chain from the ground up—removing every trace of Chinese components, down to the semiconductor level—while scaling production to one million drones per year, a goal they see as critical to U.S. national security given China’s dominance in global drone manufacturing.

Origins: From basement hobbyists to defense founders

  • Olaf and Saurin met as teenagers at a drone racing competition in Indiana, bonding over obsessive attention to detail in drone design and a shared drive to win races.
  • They spent years building and iterating on hundreds of drone configurations, constantly swapping motors, flight controllers, and frames to optimize performance.
  • In 2023, they founded Neros in Saurin’s basement in Norwich, Vermont, initially building 30 racing drones using entirely off-the-shelf Chinese parts—every screw, motor, carbon fiber frame, radio, and chip came from China.
  • They didn’t consider country of origin at first; their only goal was performance.

First trip to Ukraine: A wake-up call

  • In September 2023, Olaf, Saurin, and Saurin’s dad flew to Ukraine with 30 drones in their suitcases, delivering them to frontline units.
  • The trip was surreal: they underwent emergency medicine training, met Ukrainian fighters, and saw grassroots drone-building efforts—wives assembling drones in skyscrapers, soldiers buying $400 Chinese drones out of pocket.
  • They witnessed how FPV drones were already responsible for a staggering share of casualties in the war, and how Ukraine’s survival depended on mass-producing weapons faster than Russia.
  • Crucially, they realized that China was supplying both sides, profiting from battlefield feedback to improve its own drones while building a massive industrial base funded by Ukrainian and Russian spending.

The China problem

  • China produces 20–40 million drones per year; the U.S. produces only 40,000–70,000 (including all types).
  • DJI alone likely produces one drone per second during working hours.
  • 97% of components in drones used by both Ukraine and Russia are made in China—even when final assembly happens locally.
  • China received real-time battlefield data from both sides, allowing it to rapidly iterate on anti-jam radios, fiber-optic links, and long-range strike platforms—all without government R&D funding.
  • Olaf calls this “evil” and “terrifying,” noting that China’s drone dominance represents a strategic loss for the U.S.

Building a China-free drone

  • Neros’ drone is likely the most China-free drone in the world:
    • All core electronics (PCBAs) are designed in the U.S.
    • Bare boards are fabricated in the U.S. (lamination, lithography, SMT).
    • Chips are China-free; Olaf can name the only three Chinese chips in the entire system.
  • They’ve pursued vertical integration: custom flight computer, motor driver, anti-jam radio, and video link—all designed in-house.
  • This level of de-risking is extremely rare; most defense companies either don’t know their supply chains or only limit Chinese parts.
  • Neros is transparent with the DoD about remaining dependencies and actively works to eliminate them.

Scaling production: From 30 to 1 million drones per year

  • Neros currently produces 2,000 drones per month, the largest drone manufacturing line in the U.S. by a factor of two.
  • Their goal is 1 million drones per year—still a “drop in the bucket” compared to China, which recently placed a single purchase order for 1 million drones with one company.
  • Scaling requires solving brutal supply chain challenges:
    • Lead times for semiconductor orders are 6+ months.
    • They must forecast demand far in advance while keeping designs flexible.
    • They’ve decoupled PCB orders (stable) from component sourcing (volatile) to allow faster iteration.
  • More than half of current production goes to Ukraine via European coalitions—before significant U.S. government orders.

End-user obsession and bottom-up procurement

  • Olaf and Saurin are deeply empathetic to end users—frontline soldiers—because they’re close in age, background, and mindset.
  • They prioritize direct feedback from warfighters over top-down Pentagon procurement processes.
  • In Ukraine, soldiers can choose approved drones via Amazon-style storefronts and earn cash incentives for successful kills—a model Olaf advocates for the U.S. DoD.
  • This bottom-up approach led to organic adoption: Pete Hegseth and JD Vance were photographed with Neros drones after Marine Corps units pushed hard to get them.

Real-world feedback and rapid iteration

  • Early versions of Neros drones were rejected by Ukrainian testers as “not fit for battlefield use” due to weak radios, poor cameras, and excessive weight.
  • Feedback is blunt and immediate: soldiers call directly when systems fail mid-mission.
  • Neros uses this feedback to iterate quickly, though long lead times make rapid changes difficult.
  • They’ve learned to balance flexibility with supply chain stability—e.g., ordering boards early while keeping firmware and RF components updatable.

Manufacturing philosophy: Consumer tech, not legacy defense

  • Neros rejects traditional defense procurement practices that rely on expensive, outdated mil-spec components (e.g., a $200 connector used on Abrams tanks).
  • Instead, they adapt consumer-grade parts for military use:
    • Use $3 microcontrollers as the main flight computer.
    • Repurpose RF chips from parking meters into wideband anti-jam radios.
  • They follow SpaceX’s “algorithm”: put engineers next to the production line, minimize connectors, reduce board count, and design for manufacturability.
  • They aim to build a vertically integrated U.S. PCB fabrication capability, similar to SpaceX’s Starlink production in Bastrop, Texas.

Lessons from SpaceX and global ambitions

  • Neros sees itself as the next chapter in American hard-tech manufacturing after SpaceX.
  • They admire SpaceX’s ability to produce Starlink terminals at China-level prices without Chinese supply chains.
  • Long-term, Neros wants to establish local production entities in allied countries (e.g., Ukraine, Taiwan), not outsource to contract manufacturers like Apple does with Foxconn.
  • These entities would be fully integrated into Neros, building local industrial capacity while maintaining U.S. oversight.

Personal cost and motivation

  • Olaf describes living a “split life” as a teenager—academically focused but emotionally disconnected, with friendships limited to online Discord communities.
  • Building Neros fulfilled a lifelong need to create tangible things and work alongside passionate people.
  • The pressure is immense: every day of delay could mean a warfighter dies.
  • During a critical 4-month sprint to deliver a new ground station, the team worked 16-hour days, fell asleep at their desks, and pushed through illness—culminating in a flawless live demo in Latvia where their drone outperformed all competitors.
  • Olaf reflects that happiness comes not from stability but from climbing out of the pit—one step at a time.

The hardest thing Olaf has overcome

  • Living a disconnected, online-only adolescence and struggling to form real-world relationships.
  • Finding fulfillment through Neros by finally being surrounded by people who share his obsession with building things.
  • Accepting that the mission will never truly end: even after reaching 1 million drones, the goalposts will keep moving.
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