HD Hyundai Heavy Industries formalized its defense technology partnership with Anduril Industries, signing a memorandum of agreement for cooperation in ship development on August 7, as South Korea’s largest shipbuilder attempts to expand its foothold in the lucrative U.S. military market.
The agreement with Palmer Luckey’s $30.5 billion defense startup builds on an April memorandum of understanding between the companies, with plans to develop unmanned surface vessels combining HD Hyundai’s shipbuilding expertise with Anduril’s artificial intelligence systems. A prototype for the Korean market is expected around 2027.
The partnership comes as HD Hyundai intensifies its U.S. market strategy following its first-ever maintenance, repair and overhaul contract for a US Navy vessel – the USNS Alan Shepard – part of South Korea’s broader “Make American Shipbuilding Great Again” initiative.
Anduril, founded by the Oculus creator, has developed autonomous military systems built on its Lattice software platform and recently raised $2.5 billion at a $30.5 billion valuation. The company supplies AI-powered defense systems to the U.S. military and allies.
Yet questions remain about execution timelines and the commercial viability of autonomous naval systems, particularly given the regulatory complexities surrounding AI-powered military equipment and international arms sales.
HD Hyundai will design and construct vessels while Anduril provides autonomous mission execution systems, targeting both Korean and U.S. defense markets in an increasingly competitive sector.
