South Korea's Hyundai Motor Group has signed a memorandum of understanding with Korea Aerospace Industries (KAI), the country's state-backed aerospace manufacturer, to jointly develop and mass-produce advanced air mobility (AAM) aircraft. The partnership, formalised in Seoul on 8 May, will combine Hyundai's electric aviation powertrain technology — also being developed alongside its affiliate Kia — with KAI's aircraft engineering expertise, covering areas such as supply chains and regulatory certification. The deal marks a significant step for both companies as the global race to commercialise electric vertical take-off and landing vehicles and other next-generation air transport solutions intensifies.