SEOUL, Aug. 3 (Yonhap) -- Hanwha Aerospace Co. said Monday it has agreed to terminate urban air mobility (UAM) component deals worth a combined 454.8 billion won (US$318 million) with Britain's Vertical Aerospace.

The company signed the two contracts in 2022 and 2023 to supply components for Vertical Aerospace's VX4, an electric vertical takeoff and landing (eVTOL) aircraft.

The London-based company had aimed to commercialize the four-passenger air taxi by 2025, but the timeline has been delayed.

"Although we faithfully fulfilled our contractual obligations after the contracts were signed, we agreed to terminate the contracts based on a strategic decision, as market conditions and the direction of the project have changed from the original business objectives," Hanwha Aerospace said in a regulatory filing.

Separately, the two companies signed a memorandum of understanding to continue their partnership, Hanwha Aerospace said.

brk@yna.co.kr

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