South Korea’s HD Hyundai partners with HII to boost US naval shipbuilding
The two companies will work together to improve shipbuilding productivity, optimise costs and delivery times, and promote the digitalisation of shipyards
The partnership is expected to accelerate HD Hyundai’s entry into the US market, positioning the company to benefit from rising tensions between the US and China in the shipbuilding sector
SOUTH Korea’s HD Hyundai signed a Memorandum of Understanding with US military shipbuilder Huntington Ingalls Industries to collaborate on warship construction and enhance shipbuilding productivity.
The partnership aims to cut construction costs and improve delivery times by sharing best practices.
This move comes as the US is seeking support from allies to revitalise its domestic shipbuilding industry and counter China’s growing dominance in the sector.
Both shipbuilding giants plan to promote the integration of process automation, robotics and artificial intelligence in the development of digital shipyards.
The agreement also includes workforce training, engaging with the component supply chain and exploring joint investment opportunities.
“This MOU is particularly significant as it marks the first collaboration between two leading shipbuilding companies from South Korea and the US, both of which have the capability to construct the world’s most advanced Aegis ships,” HD Hyundai said.
The company added that the partnership is expected to serve as a catalyst for strengthening the shipbuilding alliance and fostering greater trust between the two nations.
HII operates Ingalls Shipbuilding, the largest US shipyard for surface combat vessels, located in southern Mississippi. The facility is responsible for building two thirds of the US Navy’s recently ordered Aegis destroyers, along with the entire fleet of large amphibious assault ships and national security cutters.
The agreement was signed at the 2025 Sea Air Space exhibition in Washington. For HD Hyundai, the naval alliance with HII is expected to accelerate its entry into the US market.
At the same exhibition, the company signed two additional MOUs. Those include the one with the ABS for design certification of a lightweight combat support ship for the US Navy.
Another was penned with US naval engine manufacturer Fairbanks Morse Defense to co-operate on the local supply chain within the US.
In addition, HD Hyundai Naval Ship Institute is in discussions with the US Office of Naval Research to pursue joint research and development in next-generation naval ship design.
These agreements follow an earlier MOU signed on April 4 with US defence technology firm Anduril Industries to co-develop unmanned surface vessels and collaborate in entering the global USV market.
