Hyundai Motor Group has formed an alliance with Korea Aerospace Industries (KAI) to target the advanced air mobility (AAM) market. Hyundai Motor focused on developing its own technology for several years, but as rivals such as Toyota, which partnered with a specialized air mobility company, pulled ahead, it is seen as having ultimately decided to join hands with KAI.
According to the mobility industry on the 23rd, Hyundai Motor Group on the 8th signed a memorandum of understanding (MOU) at its Yangjae headquarters in Seoul, with Vice Chairman Chang Jae-hoon and KAI President Kim Jong-chul in attendance, for the joint development of future air mobility aircraft based on electrified aviation powertrains.
The MOU includes cooperation across the entire process of AAM commercialization, from aircraft development to mass production. KAI will be responsible for AAM airframes, and Hyundai Motor Group will handle development of electrified aviation powertrains. The two companies are said to have already begun discussing a survey of the global AAM market and development direction.
◇ Hyundai Motor's independent path stalls… Toyota teams with U.S. Joby and enters certification
AAM is regarded as one of Hyundai Motor Group's key future businesses. At the Consumer Electronics Show (CES) in Las Vegas in 2020, Chairman Chung Eui-sun personally said, "We aim to complete development of personal air vehicles (PAV) for the AAM business as quickly as possible and commercialize them around 2028."
To develop AAM technology, Hyundai Motor Group recruited President Shin Jae-won, who worked for a long time at NASA, as overall head. In 2021, it established the U.S.-based air mobility subsidiary Supernal and has poured in about 1 trillion won to date.
However, roughly six years on, Hyundai Motor Group's AAM business remains sluggish. Airframe development has produced only concept models, making commercialization by 2028, the target year presented earlier by Chung, virtually impossible. President Shin Jae-won stepped down last August without notable results.
While Hyundai Motor Group's AAM business has stalled, rival automakers that joined hands with outside mobility companies are moving quickly. Some are already undergoing certification and are on the verge of commercialization.
Toyota has steadily advanced step by step after deciding in 2020 to invest a total of $894 million in U.S. AAM startup Joby Aviation. In February, it dispatched 200 personnel versed in the Toyota Production System to Joby's plant to strengthen mass production of airframes.
Joby is currently undergoing FAA airworthiness certification for its battery-based air taxi. Airworthiness certification evaluates "airworthiness," which refers to whether an aircraft's performance is suitable for flight safety, and certifies it if there are no issues. It effectively serves as a flight permit. In Korea, the Ministry of Land, Infrastructure and Transport oversees it, and in the United States, the Federal Aviation Administration (FAA) does.
Toyota and Joby currently have a system in place to produce one air taxi per month. If the Toyota personnel dispatched to Joby's plant this year build proficiency in AAM airframe production, monthly output is expected to rise to four units next year.
Stellantis also entered the market in 2021 with U.S.-based Archer Aviation. Late last year, it invested $650 million to expand a Georgia plant and more. Under the arrangement, Archer builds the airframe and Stellantis mass-produces it at the factory. The two companies are said to be building infrastructure with the goal of launching an air taxi pilot program this year in the United States and the United Arab Emirates (UAE).
Japanese parts maker Nidec also set up a joint venture with Eve Air Mobility, which was spun off from Brazilian aircraft manufacturer Embraer, to produce electrified aircraft powertrains.
◇ Joining hands with KAI… Advantageous for earning stringent airworthiness certifications in Korea and the U.S.
The mobility industry says Hyundai Motor Group, through its collaboration with KAI, has laid the groundwork to catch up with rivals in the AAM market as soon as possible. To enter the AAM market, companies must pass stringent airworthiness certification, and KAI's strong technological capabilities are expected to be advantageous in obtaining certification.
KAI is the only company in Korea that has obtained airworthiness certifications for both civilian and military aircraft. In the military sector, examples include the Surion helicopter, the KF-21 fighter, and the FA-50. In civilian aircraft, it earned certification through the KC100. The KC100 is a four-seat light aircraft developed by KAI for certification. At the time, Korea's airworthiness certification was conducted under the same standards as the FAA. Korea and the United States have a bilateral aviation safety agreement, so certification obtained in Korea is recognized in the U.S.
Unlike passenger jets, which are governed by dense regulations, AAM aircraft are new products dedicated to vertical takeoffs and landings, and must meet FAA safety standards in detail from the design stage, according to the industry.
A mobility industry official said, "Airworthiness certification is a very stringent process because it verifies safety from the design stage, not by evaluating a finished aircraft," adding, "Hyundai Motor Group should be able to accelerate its mobility business through collaboration with KAI."