HD Hyundai Heavy Industries signed an agreement with defense technology firm Anduril Industries to develop autonomous surface vessels, with plans to complete prototypes by 2026 as the companies position themselves for US Navy contracts worth billions.
The Seoul-based shipbuilder will construct the vessels at its Ulsan facility and provide autonomous navigation technology, while Anduril supplies mission execution software, according to an announcement from HD Hyundai on Nov. 23. The partnership comes as multiple competitors race to win contracts under the Navy’s Modular Attack Surface Craft program.
Congress allocated $2.1 billion for MASC, which seeks autonomous vessels that can operate alongside traditional warships in contested waters. The Navy opened bidding in July for three prototype variants after merging its previous large and medium unmanned vessel programs.
HD Hyundai faces execution challenges despite its scale as the world’s first shipbuilder to deliver 5,000 vessels. The company has limited experience with autonomous surface craft, though subsidiary Avikus has developed navigation assistance systems. Anduril, valued at $30.5 billion, has built underwater drones but not surface vessels.
Legal hurdles complicate foreign participation in US naval construction. The Burns-Tollefson Act prohibits foreign ship construction for US naval use, requiring assembly within the United States. The first prototype will be built in Korea for validation, with future production planned at Anduril’s Seattle facility.
The partnership faces competition from BlackSea Technologies, which already produces one vessel daily, along with ventures from Blue Water Autonomy and Eureka Naval Craft.
