Hanwha Aerospace terminates US$318 mln UAM component deals with Vertical Aerospace
Quick Look
- Hanwha Aerospace terminated UAM component deals worth US$318 million with UK's Vertical Aerospace due to changed market conditions and project direction, despite fulfilling obligations.
- The companies signed an MOU to continue partnership.
AI-generated summary
Why It Matters
Hanwha Aerospace and Vertical Aerospace had signed two UAM component deals in 2022 and 2023 for Vertical's VX4 eVTOL aircraft. Vertical Aerospace aimed to commercialize the VX4 by 2025, but this timeline has been delayed.
SEOUL, Aug. 3 (Yonhap) -- Hanwha Aerospace Co. said Monday it has agreed to terminate urban air mobility (UAM) component deals worth a combined 454.8 billion won (US$318 million) with Britain's Vertical Aerospace.
The company signed the two contracts in 2022 and 2023 to supply components for Vertical Aerospace's VX4, an electric vertical takeoff and landing (eVTOL) aircraft.
The London-based company had aimed to commercialize the four-passenger air taxi by 2025, but the timeline has been delayed.
"Although we faithfully fulfilled our contractual obligations after the contracts were signed, we agreed to terminate the contracts based on a strategic decision, as market conditions and the direction of the project have changed from the original business objectives," Hanwha Aerospace said in a regulatory filing.
Separately, the two companies signed a memorandum of understanding to continue their partnership, Hanwha Aerospace said.
What to Watch
AI outlook — possibilities, not facts
Hanwha Aerospace and Vertical Aerospace will continue their partnership under new terms.
Very likely · Within months
Open Questions
- What are the new terms of the continued partnership?
- What specific market conditions changed?
- What is the new commercialization timeline for VX4?
