Hanwha Systems, Aerospace to invest $115 million in Overair
Hanwha Systems and Hanwha Aerospace will invest a combined $115 million into Overair, a U.S. air mobility start-up, as the Korean companies join to work on an electric vertical takeoff and landing (EVTOL) aircraft.
In the series B funding, Hanwha Aerospace, an aircraft engine producer, will cover $65 million, and Hanwha Systems, an IT service provider specializing in sensors and network, $50 million.
The amount of equity holding being acquired in exchange for the investment will be decided in the future because the funding was made in the form of convertible notes.
The investors are getting involved in a project surrounding Butterfly, a passenger aircraft jointly developed by Overair and Hanwha Systems. The Santa Ana, California-based unit spun off from Karem Aircraft, an American military-focused aerospace company.
A prototype of Butterfly will come to fruition in the first half of 2023 and fly sometime between 2024 and 2025 after being certified by regulators.
Hanwha Systems will work with Overair in building the airframe of the aircraft and an area for it to land and take off. The Korean company will also develop a system to manage air traffic and communication between the machine and people on the ground.
Hanwha Aerospace will provide a battery-powered propulsion system for the all-electric Butterfly. The unit will also collaborate with Overair in introducing “a hybrid propulsion system” that combines the benefits of gas turbine, hydrogen fuel cells and electric battery.
BY PARK EUN-JEE [email@example.com]