HD Hyundai Heavy, US undersea tech provider join hands on next-gen subs

December 22, 2025, by Fatima Bahtić

South Korean heavyweight HD Hyundai Heavy Industries (HD HHI) has signed a strategic Memorandum of Understanding (MOU) with US-based undersea operations specialist Maritime Operations Group (MOG) to accelerate the development, construction, and delivery of next-generation diesel-electric submarines and advanced undersea technologies.

The MOU was signed on December 16 in Washington by Park Yong-Yeol, Head of the Naval Ship Business Unit of HD HHI, and Patrick Nanson, CEO of MOG.

The partnership is driven by a shared objective: enhancing the rapid availability of submarine capabilities for US government and allied missions while improving industrial efficiency across the defense ecosystem.

Under the agreement, the two companies will collaborate on:

Design and construction of diesel-electric submarines optimized for US Navy training, RDT&E, and special mission support;
Advancement of US shipyard capabilities through HD HHI’s manufacturing and MRO expertise;
Development of procurement, certification, and lifecycle support frameworks enabling commercially owned and operated submarines to be rapidly integrated into the US defense ecosystem;
Integration of undersea systems and payloads aligned with US and allied operational requirements.

The signing ceremony was attended by U.S. Senator Tim Sheehy, who highlighted the strategic importance of leveraging allied shipbuilding expertise and commercially operated submarine capabilities to expand undersea training capacity and help address current submarine availability challenges faced by the US Navy.

Through this partnership, HD Hyundai Heavy Industries reinforces its commitment to supporting allied naval readiness and strengthening its presence in the US defense market.

In a separate statement, as part of its international expansion strategy, HD HHI signed a codevelopment contract with state-owned SIMA Peru for the co-development and co-production of submarines for the Peruvian Navy. HD HHI noted that through close collaboration with SIMA Peru and the Peruvian Navy, the company aims to support Peru in establishing long-term, sovereign naval industrial capabilities.