[Global Big 3 Hyundai Motor] Beyond Cars to Moon Exploration... The Success Formula for Future Growth

Moon Exploration, Joint Research by 6 Domestic Government-Funded Research Institutes
AI Research Institute in the US, Global Software Center in Korea

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group is accelerating the discovery of future growth engines, ranging from Advanced Air Mobility (AAM) to lunar exploration and artificial intelligence (AI). Just as it secured a leading position in the electric vehicle market through the dedicated electric vehicle platform E-GMP, the group aims to lead the market by entering related fields ahead of others. Chairman Chung Euisun's vision for the future extends beyond the automotive sector to space, prompting expectations of large-scale organizational changes within the group as well as the industry.

According to the automotive industry on the 17th, Hyundai Motor has been recruiting for the position of ‘Lunar Exploration Mobility Project Manager’ since the 8th. The project manager will be responsible for overseeing all aspects of lunar exploration mobility development in collaboration with external and internal organizations.

Last month, Hyundai Motor Group signed a joint research agreement and formed a consultative body with six domestic government-funded research institutes possessing aerospace capabilities to develop lunar surface exploration mobility.

The consultative body will develop the technologies required for lunar exploration mobility and review specific strategies and plans for operating mobility on the moon. In this process, Hyundai Motor and Kia will pool the company's future technological capabilities to support the consultative body.

Hyundai Motor and Kia have organized the consultative body with core personnel responsible for robotics development, including ▲ Robotics Lab ▲ software and hardware design ▲ space environment response ▲ special equipment for exploration missions.

South Korea's Lunar Orbiter 'Danuri'/Daejeon Photo by Jinhyung Kang aymsdream@

Success in lunar exploration requires not only the development of the mobility body but also technologies in various fields such as scientific exploration equipment, operational software, and space communication functions. The moon is exposed to an environment vastly different from Earth, including extreme temperatures (130°C to -170°C), millions of craters, and radiation exposure. Hyundai Motor Group expects to expand the vision of mobility into space during the R&D process and to proactively secure future core technologies applicable to the mobility business.

AAM is a future growth business that Hyundai Motor Group has been steadily leading. Last month, Chairman Chung participated in the UK airshow, met with top executives in the aviation industry, and signed business agreements to build the AAM ecosystem.

AAM encompasses Urban Air Mobility (UAM) and Regional Air Mobility (RAM). According to the Ministry of Land, Infrastructure and Transport, the global UAM market is expected to grow from $6.1 billion (about 8 trillion KRW) in 2023 to $609 billion (about 800 trillion KRW) by 2040, a 100-fold increase. Since there is no absolute dominant player in this field, commercializing AAM would secure market leadership.

To this end, Hyundai Motor has agreed to conduct joint research by 2025 on the battery propulsion system of UAM aircraft being developed by Rolls-Royce and Supernal. The core of Hyundai Motor’s AAM is ‘hydrogen fuel cells.’ The plan is to increase energy efficiency through hydrogen fuel cell technology and ultimately achieve the global trend of ‘carbon neutrality.’

Hyundai Motor also signed a business agreement with French aircraft engine company Safran. Hyundai and Safran will jointly develop propulsion systems to be installed on AAM aircraft. Notably, last year, Hyundai Motor Group acquired Boston Dynamics, a US robotics company, to expand the future mobility ecosystem including AAM.

Additionally, Hyundai Motor Group will establish dedicated research institutes for future technology investment. The group plans to set up an AI research institute in the United States and a global software center in Korea to build capabilities in AI and software, which are core technologies for future new industries.

Hyundai Motor, Kia, and Hyundai Mobis will invest a total of $424 million (about 551.9 billion KRW) to establish a robotics AI research institute in Cambridge, Boston, Massachusetts, USA. Boston Dynamics, acquired by Hyundai Motor Group last year, will also invest some equity in the robotics AI research institute.

The corporation name for the robotics AI research institute is likely to be ‘Boston Dynamics AI Institute.’ Mark Raibert, founder and former chairman of Boston Dynamics, will serve as CEO and director of the institute.

Hyundai Motor Group views robotics as a new growth engine. According to the group, the global robotics market, which was $44.4 billion (about 58 trillion KRW) in 2020, is expected to grow to $177.2 billion (about 231 trillion KRW) by 2025.

The robotics AI research institute plans to secure foundational robotics technologies. It will continuously develop robotic capabilities such as motor intelligence and cognitive intelligence and train robots based on data collected through interaction with external environments. In the mid to long term, Hyundai Motor Group’s robotics AI research institute plans to build a revenue model by selling robotic AI platforms.

A group official said, "The global software center will lead bold innovation based on a flexible and creative organizational culture," adding, "By securing a high level of software capability, it will contribute to the rapid establishment of a ‘Software-Defined Vehicle (SDV)’ development system."