NEW YORK, Dec 10 (Reuters) – Hanwha Group, a major shipping company from South Korea, has partnered with Vatn Systems, a U.S. defense startup, to create autonomous underwater drones for the U.S. Navy. This collaboration is part of ongoing efforts to address China’s growing naval power.

In October, Hanwha invested in a $60 million funding round for Vatn Systems, a defense firm based in Rhode Island. This company is working on an autonomous drone shaped like a torpedo, which costs around $75,000 and is intended for surveillance or as a weapon in attacks. Hanwha and Vatn confirmed this funding, which had not been reported before.

As the Pentagon and the White House aim to enhance the capabilities of the U.S. Navy, Hanwha’s involvement in U.S. defense technology is particularly notable. They are looking to equip the Navy with autonomous surface and underwater vessels to help prevent a possible Chinese invasion of Taiwan.

Michael Coulter, CEO of Hanwha Defense USA, stated, “We’re talking about unmanned aerial, surface, and underwater vehicles as crucial solutions for winning that fight.”

Vatn was founded in 2023 and has secured $20 million in contracts this year, primarily with the Pentagon, according to CEO Nelson Mills. He noted, “If we control the underwater and the surface, we can control trade routes, the movement of ships, and troop transfers.”

The success of Ukraine’s kamikaze unmanned speedboats against the Russian fleet in the Black Sea has increased interest in autonomous vessels. However, the industry is still developing, and the U.S. Navy has faced challenges in launching its autonomous fleet.

Hanwha manufactures submarines and surface ships, as well as offshore naval platforms. The company was sanctioned by China after acquiring Philly Shipyard last year. In August, it played a central role in a pledge by South Korean firms to invest $150 billion in the U.S. industry.