Hyundai Motor Group and Aptiv announced today that they will be forming an autonomous driving joint venture valued at $4 billion.

The joint venture will advance the design, development and commercialization of SAE Level 4 and 5 autonomous technologies. The joint venture will begin testing fully driverless systems in 2020 and have a production-ready autonomous driving platform available for robotaxi providers, fleet operators, and automotive manufacturers in 2022.

As part of the agreement, Hyundai Motor Group and Aptiv will each have a 50 percent ownership stake in the joint venture, valued at a total of USD 4 billion. Aptiv will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions. Hyundai Motor Group affiliates - Hyundai Motor, Kia Motors and Hyundai Mobis - will collectively contribute USD 1.6 billion in cash at closing and USD 0.4 billion in vehicle engineering services, R&D resources, and access to intellectual property.

The new joint venture will be led by Karl Iagnemma, President, Aptiv Autonomous Mobility and headquartered in Boston, with technology centers across the United States and Asia, including Korea. Hyundai Motor Group and Aptiv will each appoint an equal number of directors to govern the joint venture.

The transaction is subject to regulatory approval and is expected to close early in the second quarter of 2020.

The joint venture’s Korea operations will serve as a key technology center as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms. Hyundai Motor Group’s presence in the local automotive market and the country’s 5G infrastructure are anticipated to spur the partnership’s development efforts.

Hyundai first began testing autonomous vehicles on public roads in the U.S. in 2015 with a license from the state of Nevada.

During CES in 2017, Hyundai advanced its trials in urban environments, demonstrating self-driving technologies to the public with its autonomous IONIQ model. In February 2018, Hyundai demonstrated Level 4 autonomous driving technology on a highway, as five NEXO fuel cell electric vehicles traveled 190 kilometers from Seoul to Pyeonchang without any driver engagement.

Aptiv, formerly known as Delphi Automotive, offers a portfolio of mobility solutions that includes perception systems, software algorithms, compute platforms, and data and power distribution.

Aptiv conducted the first coast-to-coast automated drive in the United States in 2015, and was the first to commercially deploy autonomous vehicles globally.

Aptiv operates more than 100 autonomous vehicles on multiple continents, across a range of driving conditions and environments, including the largest commercial deployment of autonomous vehicles in Las Vegas with a ride-hailing network.