South Korean conglomerate Hanwha Group has joined forces with U.S.-based defense startup Vatn Systems to develop advanced autonomous underwater drones for the U.S. Navy. The collaboration marks a significant step in strengthening bilateral defense capabilities amid rising security concerns and China’s growing naval power.
A Strategic Investment to Boost U.S. Naval Autonomy
Hanwha participated in a $60 million funding round for Rhode Island–based Vatn Systems, which is developing a low-cost, torpedo-shaped autonomous drone priced at about $75,000. Designed for surveillance and potential strike operations, these underwater drones are aimed at helping the U.S. Navy rapidly expand its autonomous fleet.
Pentagon officials and the White House have stressed the urgent need to deploy unmanned aerial, surface, and underwater platforms to counter potential threats, particularly in the Indo-Pacific region. According to Michael Coulter, CEO of Hanwha Defense USA, this partnership aligns strongly with U.S. strategic requirements “to win that fight.”
Vatn Systems, founded in 2023, has already secured around $20 million in Pentagon contracts this year alone, underscoring the growing demand for such technologies.
Rising Global Demand for Autonomous Maritime Defense
Ukraine’s effective use of kamikaze unmanned boats against Russia’s Black Sea fleet has intensified global interest in unmanned maritime systems. However, the U.S. Navy has faced challenges in scaling an autonomous fleet, making industry partnerships even more crucial.
Hanwha’s expertise in building submarines, surface vessels, and offshore platforms positions it as a strong partner for accelerating development in this field. Despite being sanctioned by China after acquiring the Philly Shipyard, Hanwha continues to deepen its presence in U.S. defense manufacturing. In August, the company joined a pledge of South Korean firms to invest $150 billion into the American industry further strengthening economic and defense ties.
Vatn CEO Nelson Mills highlights the strategic value of undersea dominance: “If we control the undersea and the surface, you control the lanes of commerce, the movement of ships, and the movement of troops.”
The Hanwha–Vatn Systems partnership represents an important step toward modernizing U.S. naval capabilities through cost-effective, autonomous underwater drones. As geopolitical tensions rise and demand for unmanned defense solutions grows, this collaboration could play a pivotal role in shaping the future security landscape of the Indo-Pacific region and beyond.
Did you subscribe to our daily Newsletter?
It’s Free — Click here to Subscribe!
Source: Reuters
