South Korean defense conglomerate Hanwha has invested in Vatn Systems, a U.S. developer of autonomous underwater vehicles (AUVs), as part of its strategy to secure next-generation maritime unmanned technologies and expand its footprint in the U.S. defense market.
Vatn Systems said on Tuesday (local time) that it has raised $60 million in a Series A round backed by Hanwha and a slate of global investors. The funding was led by VC firm BVVC, with participation from AirBorne Ventures, Geodesic Capital, and Bertin Ventures, along with existing backers including DYNE Ventures, Propeller Ventures, SAIC Ventures, and Lockheed Martin Ventures.
Founded in 2023 by a group of maritime and military technology experts, Vatn Systems develops rapidly manufacturable modular AUV platforms. Its portfolio includes the Skelmir S6, designed for fast deployment, and the Skelmir S12, which combines AUV capabilities with lightweight torpedo functionality. The company has already secured commercial validation, winning a $20 million contract with the U.S. Department of Defense earlier this year. Its total funding now amounts to approximately $76.5 million.
AUVs can autonomously navigate deep waters, map seabed terrain, and detect mines or enemy submarines. They also work in coordination with unmanned surface and undersea assets to gather intelligence and support anti-submarine missions — a capability the U.S. Navy is increasingly prioritizing.
Vatn Systems CEO Nelson Mills told Reuters, “If we can dominate the sea floor and the surface, we can control not only commercial routes but also the movement of ships and military forces.”
Michael Coulter, CEO of Hanwha Defense USA, said unmanned technologies will be essential as the U.S. military prepares for potential conflict scenarios involving China.
“For the U.S. to win this fight, unmanned aircraft, unmanned surface vessels, and unmanned submarines will need to be deployed at scale,” he said.
Hanwha said its investment is part of a long-term push to expand its unmanned systems capabilities. The company’s defense division has been developing AUV technologies since 2011, becoming the first in South Korea to pass Navy-led performance evaluations for small-class autonomous undersea drones. Hanwha also maintains portfolios in unmanned surface vessels and mid-to-large anti-submarine UUVs.
The latest investment positions Hanwha to deepen cooperation with the U.S. defense ecosystem at a time when demand for unmanned maritime assets is accelerating amid geopolitical tensions in the Indo-Pacific.
