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HD Hyundai, Anduril join forces to co-develop maritime drone for U.S. Navy

Published: 23 Nov. 2025, 17:09 Updated: 23 Nov. 2025, 17:13

HD Hyundai Heavy Industries displays its next-generation naval vessels at the MADEX 2025 exhibition in Busan. From left: a future combat ship, a next-generation unmanned power carrier and a mobile unmanned power carrier. [HD HYUNDAI]

HD Hyundai has partnered with U.S. defense technology firm Anduril Industries to co-develop an autonomous surface vessel (ASV) for the U.S. Navy, positioning the Korean shipbuilder at the forefront of a rapidly expanding unmanned maritime market.

The two companies signed an agreement on Wednesday at the Westin Josun Seoul hotel in central Seoul to jointly design and construct the vessel and equip it with AI-based navigation and mission systems.

HD Hyundai will handle shipbuilding at its Ulsan shipyard and integrate its still-under-development autonomous navigation technology. Anduril Industries will install the mission systems in the United States after the vessel is transported there. Anduril Industries is a leading defense technology company that supplies the U.S. Department of Defense with AI-based unmanned systems, including surveillance towers and drones.

The two companies plan to complete the prototype by 2026. The vessel will feature optical and infrared cameras to detect surrounding objects and use generative AI to interpret situations and adjust course, speed and collision avoidance without human control.

The project is part of their bid to participate in the U.S. Navy’s Modular Attack Surface Craft (MASC) program. The initiative seeks to expand the Navy’s capabilities using smaller, modular and unmanned vessels to conduct a range of missions, from strike operations to logistics. It represents a strategic pivot from large destroyers toward a more flexible fleet architecture.

HD Hyundai and Anduril aim to present the ASV prototype as a joint team under the MASC project. Although the U.S. Navy has yet to announce a final budget, industry analysts expect the program to evolve into a multibillion-dollar investment. If adopted, HD Hyundai would become a key supplier of operational ASVs, further strengthening its foothold in next-generation naval defense.

While the Byrnes-Tollefson Amendment bars the U.S. Navy from acquiring foreign-built warships, HD Hyundai intends to manufacture components, such as hull blocks, in Korea and to carry out final assembly in the United States. The prototype remains exempt from the restriction because it is not slated for active deployment. For mass production, the companies plan to follow the same approach to stay within legal bounds.

Joo Won-ho, president of the Naval and Special Ship Business Unit at HD Hyundai Heavy Industries, left, and Anduril Industries co-founder Palmer Luckey pose for a commemorative photo at the Westin Josun Seoul in central Seoul on Nov. 19. [YONHAP]

The global ASV market, valued at $920 million in 2022, is projected to grow to $2.7 billion by 2032, with an annual growth rate of 11.5 percent, according to Allied Market Research. Analysts also link the project to broader growth in the autonomous shipping sector. Research from Acute Market Reports estimates the market for autonomous ships, including commercial vessels, will reach $254.1 billion by 2030 — far outpacing defense-specific platforms.

“Supplying ASVs to the U.S. Navy could also boost HD Hyundai’s credibility in the commercial autonomous ship market,” an industry official said.

Autonomous vessels have gained traction as potential solutions to crew shortages and maritime accidents. AI-driven route and speed optimization can also reduce fuel consumption and greenhouse gas emissions. In naval defense, unmanned platforms are increasingly seen as critical to improving operational effectiveness and reducing human risk, making ASVs among the most closely watched developments in maritime security.

Defense tech startups lead most current development efforts, but HD Hyundai has also established its own autonomous ship subsidiary, Avikus, for commercial applications.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM HYO-SEONG [[email protected]]