US defense technology firm Anduril Industries’ $6.6 billion push to build critical components for US Navy submarines is putting fresh focus on its partnership with HD Hyundai, raising the possibility of deeper cooperation in submarine manufacturing and smart shipyards.
HD Hyundai said it was open to expanding the partnership, although the two companies had not held specific discussions about the Korean shipbuilder’s involvement in the project.
Anduril, which specializes in artificial intelligence and defense technology, announced last week that it would invest $3.7 billion to build Arsenal-2, a software-defined shipyard in Sparrows Point, Maryland. Combined with a US Navy contract worth up to $2.9 billion, the project represents $6.6 billion in potential investment and contract value.
Scheduled to begin operations by 2030, Arsenal-2 will manufacture critical components for the US Navy’s Virginia-class nuclear-powered submarines, including torpedo tubes and large structural assemblies.
The components will be supplied to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding, the two shipyards that build Virginia-class submarines.
At the heart of the facility will be Anduril’s software-driven manufacturing system, designed to integrate fabrication, outfitting, material movement, inspections and documentation into a single platform. The company expects AI, automation and software to reduce production bottlenecks and accelerate submarine component manufacturing.
HD Hyundai has emerged as a potential partner because of its existing relationship with Anduril and its expertise in both submarine construction and smart shipyards.
The companies formed a strategic partnership in 2024, combining HD Hyundai’s shipbuilding and manufacturing capabilities with Anduril’s AI and autonomous technologies to pursue naval defense opportunities in Korea and the US.
Their cooperation has since expanded. In November, the companies agreed to jointly design and produce a new class of dual-use autonomous surface vessels for commercial and defense applications. In April, they broadened the partnership to include advanced unmanned underwater vehicles.
HD Hyundai has also identified AI-powered smart shipyards as a key area for cooperation under the Make America Shipbuilding Great Again initiative, which seeks to deepen shipbuilding ties between Korea and the US.
The overlap has raised expectations that the partnership could eventually extend to submarine components or smart manufacturing as Anduril builds out its highly automated US production system.
For now, however, HD Hyundai stressed that no such agreement was under discussion.
“We are currently cooperating with Anduril on unmanned underwater vehicles,” an HD Hyundai official said. “We will review any related cooperation proposals that come in the future, but at this point, nothing specific has been discussed regarding this project.”
sahn@heraldcorp.com