The South Korean shipping giant Hanwha Group and U.S. defense start-up Vatn Systems have teamed up to develop autonomous underwater drones (AUU) for the U.S. Navy. This is the latest bilateral effort by the two companies to counter China's expanding naval presence.

Hanwha took part in a $60m funding round for Vatn Systems in October. Vatn Systems is a Rhode Island defense company developing an autonomous drone in the shape of a torpedo, priced at $75,000 and designed for surveillance or strike missions. Vatn Systems and Hanwha confirmed details of a $60 million funding round in October. Vatn is a Rhode Island-based defense firm developing an autonomous torpedo-shaped drone priced at about $75,000, designed for surveillance missions or as a strike weapon.

Hanwha is pushing 'into U.S. Defense Tech' at a time when Pentagon leaders and White House scramble to 'rapidly increase the U.S. Navy capabilities', including the fielding of autonomous surface and undersea vessels that could defend against an invasion by China.

Michael Coulter CEO of Hanwha Defense USA said: "It will take unmanned aerial,?surface and unmanned underwater vehicle? to win this fight." "We think this partnership is a great way to provide that solution for the Navy."

Vatn, founded in 2023, has secured $20 million worth of contracts in the past year, mainly with the Pentagon. Nelson?Mills, the CEO, told the media.

Mills stated that "if we control undersea, then you control surface, and you also control the movement of ships and troops." Ukraine's successful use of unmanned speedboats to take on Russia's Black Sea Fleet has increased demand for autonomous surface vessels and underwater vehicles. The industry is still nascent and the U.S. Navy's deployment of an autonomous fleet has been hampered by setbacks. Hanwha, the company that builds submarines, surface vessels, and offshore platforms, has been sanctioned after its acquisition of Philly Shipyard in last year. The firm was the focus of a pledge by South Korean firms to invest $150 billion in American industry. (Reporting and editing by Joe Brock, Lincoln Feast and David Jeans.

(source: Reuters)