Aptiv and Hyundai Motor Group have announced that they are forming an autonomous driving joint venture, which will advance the design, development and commercialization of SAE Level 4 and 5 autonomous technologies.

The joint venture will start testing fully driverless systems next year, with a plan to have a production-ready autonomous driving platform available for robotaxi providers, fleet operators, and automotive manufacturers in 2022.

“This partnership further strengthens Aptiv’s industry-leading capabilities in the development of advanced driver assistance systems, vehicle connectivity solutions, and Smart Vehicle Architecture,” explains Kevin Clark, president and chief executive officer, Aptiv.

“Hyundai Motor Group’s cutting-edge engineering and R&D capabilities make them our partner of choice to advance the development of a production-ready autonomous platform.”

As part of the agreement, Aptiv and Hyundai Motor Group will each have a 50 percent ownership stake in the joint venture, which is valued at $4 billion. Aptiv will contribute its intellectual property, autonomous driving technology, and approximately 700 employees that are focused on developing scalable autonomous driving technologies, while Hyundai Motor Group affiliates will collectively contribute $1.6 billion in cash at closing, and $400 million in vehicle engineering services, research and development resources, and access to intellectual property.

“The new joint venture marks the start of a journey with Aptiv toward our common goal of commercializing autonomous driving,” says Euisun Chung, executive vice chairman, Hyundai Motor Group.

“The combined capabilities of Aptiv, a leading global technology company, and our Group, a global OEM, will create invaluable synergy to lead the autonomous driving landscape.”

Headquartered in Boston, the new joint venture will be led by Aptiv Autonomous Mobility President Karl Iagnemma. Technology centers will be located across the U.S. and Asia, including in Korea. The entities say that the Korea location will serve as a “key technology center,” as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms.