Last week, US regulators banned Chinese-made robots amid national security concerns, leaving startups like Ati Robotics in the spotlight. Founded in 2017 to develop motors for self-driving cars, Ati pivoted into robotics, focusing on hardware development to limit dependency on Chinese parts.

Ati's 10,000-pound tugger and pallet mover models are almost entirely China-free, while their first humanoid can move heavy bins around. The company has several hundred robots in operation and more than 50 customers. Investment in robotics startups hit record highs this year, with many relying heavily on Chinese hardware.

Chandra, CEO of Ati Robotics, believes the ban could hinder smaller US companies reliant on Chinese components but sees opportunities for businesses like his that have already diversified their supply chains. He says Ati’s battery cells and lidar sensors are not from China, unlike some other robot manufacturers who still use Chinese parts.

While the tugger is completely China-free, the pallet mover uses less than 5% of its components from China. Chandra acknowledges making trade-offs, like using slightly less efficient induction motors to get better battery efficiency. The company plans to source more parts locally as it sets up a manufacturing facility near Detroit.

Despite the ban, many in the robotics industry are in denial, hoping for a change of heart. For Ati Robotics, the ban could mean growth and success in an increasingly competitive market.