Seoul: Hanwha Aerospace Co. announced it has agreed to terminate urban air mobility (UAM) component deals valued at a total of 454.8 billion won (US$318 million) with Britain's Vertical Aerospace.

According to Yonhap News Agency, the contracts were initially signed in 2022 and 2023, with the intention of supplying components for Vertical Aerospace's VX4, an electric vertical takeoff and landing (eVTOL) aircraft. The London-based company had planned to introduce the four-passenger air taxi by 2025, although this timeline has since been postponed.

Hanwha Aerospace stated in a regulatory filing that despite fulfilling their contractual obligations, the decision to terminate the contracts was made strategically. This decision was influenced by changes in market conditions and the project's direction, which deviated from the original business objectives.

In a separate agreement, Hanwha Aerospace and Vertical Aerospace have signed a memorandum of understanding to maintain their partnership, ensuring future collaboration between the two companies.