Hanwha Aerospace (012450.KS) has effectively begun winding down its urban air mobility (UAM) business, which it had touted as a future growth driver. The move appears to reflect changing market conditions, including delays in commercializing the global UAM market.
Hanwha Aerospace announced in a regulatory filing on the 3rd that it would mutually terminate a 450 billion won contract to develop and supply electric vertical takeoff and landing (eVTOL) aircraft parts, which it had signed with British UAM company Vertical Aerospace (VA). The termination comes about three years after the two companies signed a contract in October 2023 to supply the tilting & blade pitch system and electric actuators for VA's eVTOL "VX4."
The tilting & blade pitch system is a core component that transmits motor power to the propeller and adjusts flight direction and thrust. The electric actuator is a device that controls UAM operations through motor rotational power generated from electrical energy.
At the time, VA was developing the VX4 with the goal of commercialization in 2025, and Hanwha Aerospace planned to supply parts to VA through 2036. However, according to industry analysis, the prolonged delay in commercialization ultimately led to the contract's termination.
The partnership between the two companies, however, has not ended. Hanwha Aerospace signed a memorandum of understanding (MOU) simultaneously with the contract termination to maintain future cooperation. This established a foundation for cooperation in similar future development projects and mass-production supply businesses.
Within the industry, some analysts say the contract termination marks the point at which Hanwha Aerospace has effectively begun realigning its future new businesses. In 2023, Hanwha Aerospace had presented "new mobility," including UAM, as one of its three main business directions alongside its defense and space businesses.
"This is a matter of adjusting investment priorities by comprehensively considering market conditions and business viability," a Hanwha Aerospace official said. "We will continue to review business opportunities related to our core technological capabilities."
