Hanwha System (CEO Jang Si-kwon and Kim Kyung-han) announced on July 11 that they will invest $25 million in K4 Aeronautics, a U.S.-based company that specializes in Personal Air Vehicle (PAV) -- seen by some as a new means of future transportation.
K4 Aeronautics, based in California, has a number of patents to implement high-efficiency, low-noise PAVs. In particular, the company also has a technology license that will be based on the development of electric propulsion PAV products, which is considered the best company to enter the market.
Through the investment, Hanwha System will secure a certain stake in K4 Aeronautics and participate together in the development of PAVs that will target the U.S. market. Hanwha System, which has been actively seeking to advance into the PAV field in order to find future businesses, will participate in development by utilizing aviation electronics, system integration and cyber security technologies.
"PAV is a very attractive business item that can expand our business into new fields by utilizing Hanwha System's aviation electronics and ICT technologies," a Hanwha System official said.
PAV is being highlighted as a new means of transportation to overcome environmental issues such as traffic congestion caused by the increase of vehicles, limits to expand infrastructure and air pollution and noise.
In particular, with the recent development of battery technology and the advent of cutting-edge technologies such as collision avoidance and self-flying, there are brisk moves to develop PAV as a new means of transportation. Global aircraft manufacturers such as Boeing and Airbus and many start-up companies are actively developing PAVs.
In addition, Uber is partnering with various companies to create the market for air taxis. The air taxi service is expected to begin in 2023 in the U.S. and commercial operations will begin in 2025. Morgan Stanley predicts the related air vehicle market will grow to US$1.5 trillion by 2040.