Hyundai says flying-taxi efforts likely won't need external funding

HYUNDAI Motor Group doesn't expect to need outside funding to develop the flying taxi it's working on in conjunction with US affiliate Supernal but concedes the external investment community may not be able to properly assess its value unless the arm is spun off.

"I don't think we have to seek external investment. That's a comforting feeling," Jaiwon Shin, president of Hyundai's advanced air mobility division, said in an interview at the Farnborough International Airshow on Wednesday (Jul 20).

"So our workforce can just focus on what it is that they need to do rather than worrying about the lack of a job in 6 months," he said. "But at the same time, the external community may not really appreciate or be able to assess the company value. One of the advantages of going public is that it's an objective assessment. As an example, Supernal could be worth US$6 billion or US$2 billion."

Hyundai joins a raft of smaller startups, from Vertical Aerospace to Lilium, Joby Aviation, Volocopter and Boeing's Wisk, in developing electric vertical takeoff and landing vehicles, or eVTOLs. While some test flights are underway, the futuristic technology is a long way from becoming a reality, with years of certification around safety and various regulatory approvals still required.

South Korea's Hyundai is however one of the few large global automakers wading into flying taxis, and sees its expertise in mass producing cars, as well as its knowledge around interior design and customer experience, as a key advantage.

"From our automotive industry experience, we have already done a lot of electrification of cars, working with battery companies for a long time," Shin said. "And we are the only company in the world that has successfully commercialised hydrogen fuel-cell-powered trucks and midsize SUVs. It's almost like a perfect marriage."

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Supernal's eVTOLs, expected to start test flights in 2025, will be powered by both electric batteries and hydrogen fuel cells, which will give range as well as power density. An eVTOL designed for intra-city passenger journeys should be ready for commercial use starting in 2028 in the US, while a hydrogen-powered mid-sized vehicle for regional, or city-to-city, cargo and passenger journeys is planned for launch in the 2030s.

Shin, an aeronautics engineer who spent about 30 years in research and development at Nasa, said it would be difficult for the aviation sector around eVTOLs to meet carbon neutrality targets by 2050 using batteries alone.

"We do need hydrogen capability," Shin said, noting that the technology isn't without its problems of storage and clean generation. But Hyundai believes it can capitalise on "our already successful commercialisation, working with governments and other industry sectors, to make sure that hydrogen ecosystems will be available". BLOOMBERG