Hyundai Mobis bets on robotics as Atlas mass production looms
Hyundai Mobis, the automotive parts manufacturing arm of Hyundai Motor Group, is poised to develop robotics joints for Atlas, the flagship humanoid robot produced by Boston Dynamics, the automaker's robotics subsidiary.
According to media reports on Monday, Hyundai Mobis recently shared its plans with its institutional investors to consider supplying 'actuators,' the mechanical systems that convert electrical energy into motion, for Atlas. These components will allow the robot to replicate the movement of human joints and muscles, enabling it to perform precision tasks such as assembling car parts.
The company is expected to supply actuators by 2028, which is in line with Hyundai Motor Group's plan to mass produce Atlas by 2028. By the end of this year, the carmaker looks to deploy the humanoid in its key global production sites, including the Hyundai Motor Group Innovation Center in Singapore and Hyundai Motor Group Metaplant America.
'Robotics is one of the strategies of applying our core electrification technologies to future businesses,' said a Hyundai Mobis official, who declined to disclose specifics, citing confidentiality.
Hyundai Mobis is reportedly developing approximately 30 types of actuators, which account for more than half of the production cost of humanoid robots. These actuators will likely consist of 3-in-1 systems with motors that convert electrical energy into torque, precision-control reducers and controllers that adjust the robot's movements.
Industry insiders indicate that Hyundai Mobis' foray into robotics signals Hyundai Motor's revamped commitment to advance its humanoid initiative. The carmaker is looking to list Boston Dynamics on the New York Stock Exchange, which requires demonstrating a technological edge over its competitors. According to Morgan Stanley, there are currently more than 100 publicly listed companies worldwide that develop humanoid robots, with more than half of these being Chinese firms.
Earlier this year, Hyundai Motor vowed to accelerate its robotics business by forging a strategic partnership with Nvidia, the US chip giant, to create artificial intelligence-based robots as well as virtual environments for training robots.
'In the long term, the introduction of Atlas could offer a solution to mitigate the rising labor costs resulting from the expansion of Hyundai Motor's overseas production centers, including those in the US,' said Kim Pil-su, a car engineering professor at Daelim University.
In 2021, Hyundai Motor Group acquired an 80 percent stake in Boston Dynamics for approximately 1 trillion won ($ 712.5 million). While its sales revenue rose from 78.2 billion won in 2022 to 91 billion won in 2023, its net loss also expanded from 255.1 billion won to 334.8 billion won in the same period. Due to its declining profitability, its US market debut has been repeatedly postponed, sources said. To secure funding, the carmaker has undertaken four rounds of capital increases since 2022.
Meanwhile, the global humanoid industry is anticipated to experience significant growth, primarily driven by the burgeoning AI market. According to MarketsandMarkets, an India-based market tracker, it is projected to expand to $13.3 billion by 2029 from last year's $2 billion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
21 hours ago
- Korea Herald
US, China trade talks to resume
LONDON (AFP) — United States and Chinese officials were set to meet Tuesday for a second day of trade talks in London, seeking to shore up a shaky tariff truce in a spat further strained by export curbs. The gathering of key officials from the world's two biggest economies began Monday in the historic Lancaster House, run by the UK Foreign Office, following an earlier round of talks in Geneva last month. Chinese Vice Premier He Lifeng was again heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation. A source familiar with negotiations told Agence France-Presse that talks wrapped up Monday evening and were expected to restart Tuesday. The London meeting came after Washington accused Beijing of violating their Geneva deal to de-escalate staggeringly high tariffs. A key sticking point was the export of rare earths from China. "In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy," Kevin Hassett, director of the White House's National Economic Council, told CNBC on Monday. But even though Beijing was releasing some supplies, "it was going a lot slower than some companies believed was optimal," Hassett added. This issue was raised last week in US President Donald Trump's first publicly announced telephone talks with Chinese President Xi Jinping since the Republican's return to the White House. Trump said on his Truth Social platform that Thursday's long-awaited call reached a "very positive conclusion." On Monday, the US leader told reporters that he was "only getting good reports" on the trade talks, adding, "We are doing well with China. China is not easy." US official Hassett said he expected "a big, strong handshake" at the trade negotiations. "Our expectation is that after the handshake," Hassett added, "any export controls from the US will be eased, and the rare earths will be released in volume." Both sides can then "go back to negotiating smaller matters," he said. Tensions between Washington and Beijing have soared since Trump took office, with both countries engaging in a tariffs war that took duties on each other's exports to three figures — an effective trade embargo. The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent. But Trump recently said China "totally violated" the deal. A key issue was Beijing's shipments of rare earths, crucial to goods including electric vehicle batteries. "Rare earth shipments from China to the US have slowed since President Trump's 'Liberation Day' tariffs in April," said Kathleen Brooks, research director at trading group XTB. Brooks was referring to when Trump slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies. "The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers," Brooks added. Hassett's statement signaled the Trump administration might be willing to ease some recent curbs on tech exports. Throughout its talks with Washington, China has also launched discussions with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump's tariffs. On Thursday, Beijing and Canada agreed to regularize their channels of communication after strained ties. Beijing has also proposed establishing a "green channel" to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties. According to a UK government spokesperson, Finance Minister Rachel Reeves took advantage of the London talks to meet with her US counterpart Bessent and Chinese Vice Premier He on Sunday.
Korea Herald
a day ago
- Korea Herald
Korean battery-makers push President Lee for direct subsidies
Korean firms seek bolder funding as Chinese rivals leverage robust government backing South Korean battery manufacturers are urging President Lee Jae-myung to act as they face slowing electric vehicle demand and intensifying competition from Chinese rivals increasingly dominating global markets. On May 31, three days before the presidential election, Lee wrote in a Facebook post, 'I will recharge the South Korean economy with K-batteries,' underscoring his belief that the battery industry is key to driving Korea's next economic leap. Lee's pledges included strengthening research and development to secure cutting-edge technologies such as all-solid-state batteries; introducing domestic production tax incentives; creating a "battery triangle belt" connecting the Chungcheong, Yeongnam, and Honam regions; increasing battery demand through energy storage systems; and nurturing the battery recycling industry. Calls for IRA-style subsidies While industry insiders are optimistic about the domestic tax incentives, they anticipate a more direct form of financial support from the government. Lee's tax benefit pledge offers tax breaks for companies producing and selling battery products in Korea, similar to the US Advanced Manufacturing Production Credit under the Inflation Reduction Act. However, AMPC also includes options like 'cash refunds' and 'third-party transfers' in addition to tax benefits. 'If we could receive cash returns, we'd have more flexibility to expand investments in global markets — particularly in the US, where rising tariffs on automobiles and parts are already dragging down the EV market,' said an industry source on condition of anonymity. The source emphasized that additional support measures are needed, pointing out that unlike China, which offers subsidies from direct funding to state-led R&D programs, the Korean government has only granted corporate tax credits. Under the Act on Restriction on Special Cases Concerning Taxation, the battery industry is designated a national strategic technology, making it eligible for approximately 15 percent and 30 percent tax credits on facility investments and R&D, respectively. However, these credits apply only to companies that are generating taxable profits. In the first quarter, Korea's top three battery makers — LG Energy Solution, Samsung SDI, and SK On — all reported operating losses, even when factoring in benefits from AMPC. As a result, they are likely ineligible for domestic tax breaks, despite having collectively borrowed 49.6 trillion won ($36.5 billion) for large-scale investments both at home and abroad. Chinese surge Experts suggest that even with the battery sector's strategic importance, direct subsidies from the Korean government remain unlikely. 'Korea has traditionally been wary of direct funding due to the associated risks and concerns over misusing taxpayer money,' said Kim De-jong, a business professor at Sejong University. 'In contrast, while China provides massive subsidies, it often gains substantial control over the company's management and operations.' Kim added that more feasible alternatives to direct subsidies could include offering discounted rates on electricity and water for domestic production facilities. Meanwhile, Chinese battery giants CATL and BYD have strengthened their grip on the global EV market. According to SNE Research, CATL and BYD held market shares of 38.1 percent and 17.3 percent, respectively, as of the latest period, up from the previous year. LG Energy Solution ranked third but saw its share fall from 12.3 percent to 10.2 percent. SK On and Samsung SDI also experienced declines, with market shares dropping to 4.3 percent and 3.3 percent, respectively.
Korea Herald
2 days ago
- Korea Herald
Seoul shares spike to 11-month high on hopes for policy backup, US-China talks
South Korean stocks rallied to their highest level in 11 months Monday, driven by gains in chip shares amid hopes for new policy measures under the Lee Jae-myung government and upcoming trade talks between the United States and China. The local currency rose against the US dollar. The benchmark Korea Composite Stock Price Index added 43.72 points, or 1.55 percent, to close at 2,855.77, extending its winning streak to a fourth straight session. It marked the highest level since July 16, 2024, when the index finished at 2,866.09. Trade volume was heavy at 528.24 million shares worth 13.61 trillion won ($10.03 billion), with winners beating losers 700 to 200. Foreign investors bought a net 980.0 billion won worth of stocks, while individuals and institutions sold 229.67 billion won and 721.53 billion won worth of stocks, respectively. The index opened markedly higher and maintained its momentum, as investors harbored hopes for eased global trade tensions ahead of a meeting between senior US and Chinese officials set to take place in London later in the day. Expectations have also risen for a set of measures by the Lee government aimed at bolstering the economy. During telephone talks on Friday, Lee and US President Donald Trump agreed to work toward a "mutually satisfactory" agreement on the US' sweeping tariff scheme, Seoul's presidential office said. Semiconductor and auto shares led the upturn of the index. Market bellwether Samsung Electronics rose 1.18 percent to 59,800 won, and its rival SK hynix advanced 2.0 percent to 229,000 won. Top carmaker Hyundai Motor surged 4.32 percent to 197,800 won, and its sister Kia Motors jumped 2.36 percent to 95,300 won. Leading biotech firm Samsung Biologics advanced 1.37 percent to 1.03 million won, and Celltrion gained 1.97 percent to 160,200 won. Leading financial firm KB Financial soared 4.14 percent to 110,700 won, and No. 1 steelmaker POSCO Holdings grew 0.39 percent to 258,000 won. Top online portal operator Naver increased 3.82 percent to 198,500 won, and Kakao, the operator of the country's dominant mobile messenger, spiked 16.03 percent to 51,400 won. But major battery maker LG Energy Solution sank 2.06 percent to 285,000 won, and defense giant Hanwha Aerospace dipped 2.76 percent to 880,000 won. The local currency was quoted at 1,356.4 won against the greenback at 3:30 p.m., up 2.0 won from the previous session. (Yonhap)
