Hyundai Motor invites LIG Nex1 and KAI onboard for urban air mobility takeoff

Hyundai Motor Group is pursuing to include South Korea’s two defense equipment suppliers LIG Nex1 Co. and Korea Aerospace Industries Ltd. (KAI) on its value chain on urban air mobility (UAM).

The auto conglomerate vying with defense-strong Hanwha in the launch of aerial mobility has approached two other defense suppliers to materialize its UAM initiative.

According to industry sources on Sunday, Hyundai Motor Group early this month sent out proposals to enter a strategic partnership for development of the UAM technology and establishment of related infrastructure to LIG Nex1 and KAI.

Talks are still in the early stage, but the three in principle agree on the business merit from alliance, said a source close to the matter.

Under Hyundai Motor Group’s outline, it will be in charge of directing business, research and development. LIG Nex1 will be responsible for development of payload and integrated avionics system and establishment of ground control system. KAI will contribute its vertical takeoff and landing technology and assist in development and test operations.

Hyundai Motor Group and Hanwha Group’s defense unit Hanwha Systems have played a vital role in the early-stage establishment of the domestic UAM market through cooperation with various institutions and companies in the field of flight vehicle design and manufacturing, infrastructure building and service offering.

Hyundai Motor Group has teamed up with KT (communications network), Hyundai E&C (infrastructure), Incheon International Airport Corporation (infrastructure), Korea Institute of Aviation Safety Technology (R&D), and the Export-Import Bank of Korea (finance).

Hanwha Systems has partnered with SK Telecom (communications network), Korea Airports Corporation (infrastructure), and the Korea Transport Institute (R&D).

They also have been competing hard to recruit the industry’s best talents.

Hyundai Motor Group has hired Shin Jaiwon, the former associate administrator for the Aeronautics Research Mission Directorate (ARMD) of the National Aeronautics and Space Administration (NASA), as the chief executive officer and head of its urban air mobility division. Ben Diachun, the former head of California-based aerospace startup Opener, is the chief technology officer.

Hanwha Systems’ UAM business is led by Kim Seok-kyun, who worked for the world’s leading aero-engine manufacturer Rolls-Royce.

Global UAM market is estimated to grow to $1.47 trillion by 2040 from $7 billion last year, with an average annual growth of 30.7 percent, according to Morgan Stanley. The number of worldwide UAM users also is expected to increase fast to 12 million by 2030 and 445 million by 2050, according to a report published by the Samjong KPMG Economic Research Institute last year.

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