Hyundai to deploy 30,000 Atlas robots in car factories by 2028, beating Tesla to production

Reviewed byNidhi Govil

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Hyundai Motor Group unveiled the production-ready Atlas robot at CES, announcing plans to deploy humanoid robots at its Georgia plant starting in 2028. The company aims to produce 30,000 units annually, positioning itself ahead of Tesla's Optimus in the race to automate manufacturing with advanced robotics and AI capabilities.

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Hyundai Unveils Production-Ready Atlas Robot at CES

Hyundai Motor Group has announced a major shift in manufacturing automation, unveiling the commercial version of Boston Dynamics' Atlas robot at CES in Las Vegas

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. The electric humanoid robot, featuring a glowing circular face and fully battery-powered body, represents a significant milestone as Boston Dynamics transitions from research platform to commercial production

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. Hyundai plans to produce 30,000 robots annually starting in 2028 at a new US facility, with initial deployment in car factories beginning that same year

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The Atlas robot will first work at the Hyundai Motor Group Metaplant in Savannah, Georgia, handling parts sequencing tasks that have proven safety and quality benefits

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. This deployment in car factories marks a strategic move to automate high-risk tasks while reducing physical strain on human workers. Hyundai shares jumped as much as 8.4% to a record high following the announcement

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Boston Dynamics Beats Tesla in the Humanoid Robot Race

The announcement positions Boston Dynamics ahead of Tesla in delivering functional humanoid robots to production environments. While Elon Musk predicted thousands of Optimus robots would operate in Tesla factories by the end of 2025, that timeline failed to materialize

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. Boston Dynamics CEO Robert Playter emphasized that the company only announced its intention to build a commercial humanoid in 2024, after artificial intelligence advances accelerated the pace of robot training and deployment

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This Tesla Optimus rival demonstrates significant technical capabilities that set it apart in the competitive robotics landscape. The Atlas robot features 56 degrees of freedom, up from 50 reported in April 2025, with fully rotational joints and human-scale hands equipped with tactile sensing

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. It can lift up to 110 pounds (50kg), operate autonomously, and can be taught most tasks in a single day

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. The robot is IP67 rated and functions in temperatures ranging from -4°F to 104°F (-20°C to 40°C)

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Strategic Partnerships Drive Physical AI Development

Hyundai is accelerating its push into physical AI through strategic partnerships with global technology leaders. The company announced a collaboration with Google DeepMind to integrate Gemini Robotics AI foundation models into Atlas, giving the robot greater cognitive capabilities

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. Additionally, Hyundai is sourcing AI chips and software from Nvidia, building on an October agreement to construct a $3 billion physical AI cluster in South Korea

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Physical AI refers to artificial intelligence systems embedded in hardware that collect real-world data and make autonomous decisions, spanning robotics, smart factories, and autonomous driving

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. Hyundai expects humanoid robots to become the largest segment of this market, with Goldman Sachs projecting the sector will reach $38 billion by 2035 and Morgan Stanley forecasting $5 trillion by 2050

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Mass Production Plans and Expansion Timeline

The mass production strategy involves a phased approach to deployment across Hyundai Motor Group manufacturing sites. Starting in 2028, Atlas robots will handle repetitive tasks like parts sequencing, with applications expanding gradually as safety and quality benefits are validated

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. By 2030, Hyundai plans to deploy humanoid robots for component assembly, heavy loads, and complex operations across production sites

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Boston Dynamics noted that all Atlas units slated for production this year are already committed to Hyundai and Google facilities, with plans to add additional customers in early 2027

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. The company's commercialization track record with Spot, which sells for $74,500, and Stretch robots provides confidence in scaling Atlas production

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. However, Atlas is estimated to cost hundreds of thousands of dollars more per unit than Spot

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Automation Concerns and Worker Safety Considerations

The deployment raises questions about job losses and worker displacement as automation expands across manufacturing. At Hyundai Motor's affiliate Kia Corp, the labor union called to establish a body addressing potential labor rights issues in preparation for the AI era, as workers raised concerns about expanding automation

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. Amazon reportedly aims to replace more than 600,000 jobs in the US by 2033 with robotics, according to leaked strategy documents

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Hyundai emphasizes a "harmonious collaboration between humans and robots," stating the robots are designed to reduce physical strain on workers by taking on higher-risk and repetitive tasks

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. The company's $21 billion US investment will create 14,000 direct jobs by 2028, with more than 100,000 including indirect positions

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. Atlas features 360-degree vision to spot people before they enter its working space and is designed to pause when it could put a person in danger

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