Hyundai Motor Group is marshaling approximately 200 first-tier domestic materials and components suppliers to build a dedicated humanoid robot supply chain, targeting mass production of 30,000 units annually of Boston Dynamics' ATLAS humanoid robot starting in 20281,3.
The automaker's central challenge: slashing the per-unit price from over $100,000 to the $20,000–$30,000 range, which Hyundai Motor Group says requires cutting component costs by roughly 80%. To that end, the group requested business plans from its Tier 1 suppliers during the first half of 2026, asking each company to detail proprietary technologies applicable to humanoid production.
Several major parts makers have already responded with concrete proposals. HL Mando is pursuing modularization of robot joint actuators by integrating the motor, controller, and reducer into a single unit. DIC has begun developing and mass-producing reducers for humanoids and is preparing to manufacture drive motors that exclude Chinese rare-earth materials. Samhyun has proposed a "3-in-1 smart actuator". Hyundai Motor Group also plans to work with specialized robot parts makers such as SBB Tech, SPG, and Yuil Robotics.
Hyundai Motor Group plans to offer technical support and robotics business education to suppliers as part of the transition.
The supply chain mobilization runs parallel to a broader government-backed investment push. Hyundai Motor Group and the South Korean government are accelerating a KRW 9 trillion (approximately $6.3 billion) robot and AI investment plan for the Saemangeum area in Jeollabuk-do, aiming to establish a global robot foundry2.
The effort extends beyond humanoids. Samsung Group and Hyundai Motor Group are expanding their collaboration in robotics, with Samsung Electronics having become the largest shareholder of Rainbow Robotics. The RB-01K, a four-legged combat robot dog jointly developed by Rainbow Robotics and Hyundai Rotem, is set to be deployed to the South Korean Army by the end of 2026.
South Korea's automotive and information technology component makers have triggered a sharp surge in market valuations as investors bet the country may emerge as a leading alternative in humanoid robotics.
The global humanoid market is projected to reach approximately 127 trillion won (approximately $89.5 billion) by 2035, with global annual humanoid shipments projected at 6 million units by that date.
This brief updates prior Vector Wire coverage of the same supply chain mobilization ctx. The new reporting adds detail on the KRW 9 trillion Saemangeum investment plan, specific supplier technology proposals from HL Mando, DIC, and Samhyun, and the Samsung Group–Hyundai Motor Group robotics alliance including the RB-01K military deployment timeline.
ANALYSIS The rare-earth-free motor development at DIC signals an explicit effort to reduce dependence on Chinese rare-earth supply chains — a consideration that gains weight given that several of the named Chinese humanoid robot component suppliers, including Ningbo Tuopu, Zhejiang Sanhua Intelligent Controls, Leaderdrive, and Everwin Precision Technology, represent the incumbent supply base that Hyundai Motor Group's domestic buildout would partially displace. The 80% cost-reduction target from over $100,000 to the $20,000–$30,000 range represents the kind of automotive-scale cost engineering that leverages Hyundai Motor Group's existing supplier relationships — converting auto parts makers into robotics component producers rather than building a robotics supply chain from scratch.