Hyundai Motor Group and Korea Aerospace Industries (KAI) have signed a memorandum of understanding to jointly develop an advanced air mobility (AAM) aircraft. The move to restart work around Hyundai’s Supernal eVTOL program comes following recent layoffs and a pause in flight testing.
Under the new agreement, Hyundai’s U.S.-based AAM affiliate Supernal and KAI will work together on aircraft development, while Hyundai Motor Group and KAI will separately collaborate on commercializing electrified aviation powertrains. The companies said the agreement also covers supply chains, certification processes and global customer networks. Hyundai said Supernal will lead aircraft design and engineering, while KAI will bring aircraft development experience to the program.
“Our partnership with Korea Aerospace Industries, a leader in Korea’s aerospace industry, represents a significant step forward in our efforts to develop future air mobility solutions,” Gang Hyun Seo, president and head of the corporate planning office of Hyundai Motor Group, said. “By introducing safe and efficient Advanced Air Mobility offerings, we aim to expand the boundaries of mobility into the skies.”
The announcement comes after a restructuring at Supernal earlier this year. The Los Angeles Times reported in March that Supernal laid off 296 employees, about 80% of its workforce, affecting its Irvine headquarters, Fremont facility and Mojave Air & Space Port test site. The company had also previously paused its flight program after leadership changes in 2025.
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