HII Signs $900M Deal to Automate Navy Shipbuilding with AI-Powered Robotics

HII partners with robotics firms to automate U.S. Navy ship production

America's largest military shipbuilder is making one of its biggest automation investments yet, announcing a performance-based agreement worth up to $900 million aimed at bringing advanced AI-powered robotics into U.S. Navy ship production. HII has signed long-term agreements with Path Robotics and GrayMatter Robotics to develop autonomous manufacturing systems capable of performing some of the most labor-intensive tasks involved in building warships. Rather than simply replacing existing production equipment, the partnership aims to create robotic systems that can adapt to the complexity and variability of naval shipbuilding. An industry where no two projects are exactly alike. Unlike automotive manufacturing, where robots often repeat identical tasks on standardized production lines, shipbuilding presents a far greater engineering challenge. Large steel structures vary in size, shape, and assembly sequence, requiring extensive welding, grinding, blasting, painting, inspection, and structural assembly. According to HII, the new initiative will use physical AI, combining robotics, sensors, machine vision, and autonomous decision-making, to enable machines to perform these tasks while adapting to changing production conditions. The companies say the goal is to develop automation capable of learning, improving, and operating in one of manufacturing's most demanding environments. The agreement is structured differently from a conventional defense contract. Instead of immediately awarding production work, HII will make up to $900 million in shipbuilding work available over the next seven years, provided both robotics companies achieve a series of predefined manufacturing, technology, and production milestones. The first phase focuses on developing and qualifying autonomous production techniques that meet the stringent quality requirements of U.S. Navy shipbuilding. These include robotic welding, grinding, blasting, painting, inspection, and fabrication processes, which will eventually be integrated into automated production lines. If those systems demonstrate acceptable cost, schedule, and quality performance, HII plans to begin outsourcing production work through the new manufacturing network. Beyond introducing new technology, the program is intended to address a broader challenge facing the U.S. maritime industrial base. Capacity. HII expects to outsource more than 2.5 million hours of shipbuilding work during 2026, representing a 30% increase compared with 2025. The company is also expanding its distributed manufacturing network, allowing more structural sections of ships to be fabricated outside its primary shipyards before final assembly. Initially, robotic production will focus on smaller steel structures before gradually expanding to larger units and complete modules used across multiple naval platforms. According to HII, the automation technologies are being developed for use across a wide range of U.S. Navy programs, including aircraft carriers, nuclear-powered submarines, destroyers, amphibious assault ships, future frigates, and unmanned surface vessels. Because the systems are designed to work within HII's distributed manufacturing strategy, production could eventually be shared among multiple facilities rather than concentrated entirely at major shipyards. The collaboration is part of HII's broader High-Yield Production Robotics (HYPR) initiative, which seeks to combine robotics, autonomous manufacturing, and industrial AI to improve efficiency while strengthening America's naval industrial base. Modern naval shipbuilding remains one of the world's most labor-intensive manufacturing sectors, with skilled welding and fabrication workers in particularly high demand. While automation has transformed industries such as automotive manufacturing and electronics, shipbuilding has been slower to adopt robotics because of the size, complexity, and variability of its products. If successful, HII's approach could demonstrate that advances in physical AI are mature enough to automate tasks once considered too complex for machines.

HII signs $900M robotics deal for Navy shipbuilding automation By Investing.com

ARLINGTON, Va. - HII (NYSE:HII) announced today multi-year production agreements with robotics companies Path Robotics and GrayMatter Robotics worth up to $900 million over seven years, according to a press release statement. The agreements aim to deploy AI-powered automation across U.S. Navy shipbuilding programs, including aircraft carriers, submarines, destroyers, amphibious ships, future frigates and unmanned surface vessels. The $900 million in total shipbuilding work is contingent on Path Robotics and GrayMatter Robotics meeting technology, manufacturing readiness and performance milestones outlined in the agreements. The contracts are structured in two stages: a development stage and a delivery stage. During the development stage, both companies will work with HII to develop and validate autonomous welding, grinding, blasting, painting, assembly and inspection processes for integration into an autonomous production line. The delivery stage will begin once technologies meet U.S. Navy shipbuilding standards and demonstrate favorable cost, schedule and quality performance. The agreements are part of HII's High-Yield Production Robotics (HYPR) program. Eric Chewning, executive vice president of maritime systems and corporate strategy at HII, said the collaboration represents "a strategic investment in the future of American shipbuilding." HII plans to outsource more than 2.5 million hours of shipbuilding work in 2026, a 30% increase from 2025. The company is expanding its structural assembly network to enable more work completion outside shipyards before final assembly. Path Robotics, founded in 2018, has raised more than $370 million and develops AI-powered welding systems. GrayMatter Robotics, founded in 2020 and headquartered in Carson, California, develops autonomous factory technologies for surface preparation, coating and inspection processes. HII employs 45,000 workers and describes itself as the largest U.S. shipbuilder and producer of unmanned underwater vehicles for the U.S. Navy. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Huntington Ingalls Industries Inc Signs Performance-Based Production Agreements with Path Robotics Inc and Graymatter Robotics Inc

Huntington Ingalls Industries Inc. announced long-term performance-based production agreements with High-Yield Production Robotics (HYPR) team members GrayMatter Robotics Inc. and Path Robotics Inc. The signed agreements are designed to accelerate the development and deployment of advanced physical AI automation across U.S. Navy shipbuilding programs, including aircraft carriers, submarines, destroyers, amphibious ships, future frigates and unmanned surface vessels. Under the agreements, Huntington Ingalls Industries Inc. intends to award up to $900 million in total shipbuilding work to Path Robotics Inc. and GrayMatter Robotics Inc. across seven years, contingent on the two companies meeting clearly defined technology and manufacturing readiness, and performance milestones outlined in the agreements. This sustained demand signal enables Path Robotics Inc. and GrayMatter Robotics Inc. to make significant long-term investments in robotics, autonomous systems, facilities and workforce required to deliver Navy-grade production at scale. The performance-based production agreements are part of a broader set of strategic agreements that form the HYPR Program, including collaboration and joint development frameworks that establish governance, program execution, and long-term operational alignment among the companies. The companies expect the collaborative effort to push the boundaries of automation never seen before in shipbuilding. The agreements are structured in two stages: a Navy-grade development stage and a delivery stage. In the development stage, both companies will partner with Huntington Ingalls Industries Inc. to develop, validate and qualify high-precision production techniques for autonomous welding, grinding, blasting, painting, assembly, inspection and other fabrication processes, then integrate them into an autonomous production line. The agreements establish a rigorous testing, qualification and oversight process to ensure that every technology meets the stringent standards of U.S. Navy shipbuilding. In the delivery stage, Huntington Ingalls Industries Inc. will begin sourcing shipbuilding work from both companies through the new line, contingent upon favorable cost, schedule and quality performance. The delivery stage is designed to augment Huntington Ingalls Industries Inc?s current distributed shipbuilding strategy, starting with small steel structures and growing to include units and modules.