Hyundai snaps up robotics pioneer

Hyundai Motor Group has confirmed it has agreed to buy a controlling stake in US-based robot-maker Boston Dynamics in a deal reportedly worth more than $US1.1 billion ($A1.5bn).

According to the South Korean car-maker, securing the pioneering tech company will benefit its business by allowing it to expand automation in its factories further, while enhancing its existing autonomous driving tech.

Buying Boston Dynamics will also help Hyundai branch out into making drones and robots and help it broaden its mobility vehicle offerings.

Purchasing up to 80 per cent of the robot-maker, Hyundai says in the near future the car-making group hopes to reduce its reliance on traditional car manufacturing processes, with robots set to account for up to 20 per cent of its business.

No roadmap for the Hyundai Motor Group diversification has been given but it does plan to have flying cars account for 30 per cent of its business in the future.

With the acquisition, Hyundai is expected to guide Boston Dynamics to finally becoming a profitable robo-maker.

Originally a spin-off from the Massachusetts Institute of Technology back in 1992, Boston Dynamics was bought by Google in 2013 only to be sold to a bank just four years later.

Famous for products like Spot the dog-like robot that could climb stairs, the company has struggled to commercialise its pioneering research and in March 2020 the tech company announced an annual loss of $US103 million ($A135m).

Hyundai purchasing Boston Dynamics follows Ford's decision to partner with Agility Robotics in 2019. In that case, the Blue Oval said it was developing self-driving delivery vans with robots that would drop packages on the doorsteps of people's homes.

It's not the first time that Hyundai has dabbled in robots. The car-maker itself has already developed wearable robots for its factory workers that have been proved to reduce fatigue on the production line.

Back in January, Hyundai also announced it would team up with Uber to develop air taxis but those plans are now in disarray after the ride-share firm sold its loss-making aviation arm to Joey Aviation – a electric aircraft start-up.