HII has signed agreements with GrayMatter Robotics and Path Robotics to accelerate physical AI automation across US Navy shipbuilding.
Huntington Ingalls Industries (HII) has signed performance-based production agreements worth up to $900 million with GrayMatter Robotics and Path Robotics to accelerate physical AI automation across US Navy shipbuilding programs.
The seven-year agreements aim to deploy advanced, adaptive automation solutions for the fabrication of crewed and uncrewed naval platforms.
Under the High-Yield Production Robotics (HYPR) program, the agreements will integrate robotic welding, automated material handling, surface treatment and quality inspection into an assembly line to accelerate ship and submarine construction.
The program comes as the US Navy seeks to expand shipbuilding capacity, replace aging vessels and grow its fleet amid concerns over China’s rapidly expanding naval force. However, US shipyards face constraints including shortages of skilled workers, aging infrastructure, limited physical space, and persistent production delays.
These challenges are particularly acute in complex fabrication and assembly, which require coordination across multiple specialized tasks. HYPR is designed to automate the structural process from cutting and fitting to welding, surface treatment, inspection, and coating.
HII plans to conduct proof-of-concept demonstrations in 2026, followed by a full pilot program in 2027.
“We are committed to making generational investments to develop new shipbuilding capability and to expand capacity,” executive vice president of maritime systems and corporate strategy at HII Eric Chewning said.
“Together, we are defining a new approach to robotics in shipbuilding automation that can adapt to extreme levels of complexity, mix, and size.
This collaboration represents a strategic investment in the future of American shipbuilding — strengthening industrial base resilience, expanding distributed shipbuilding capacity, feeding critical materials to our shipyards and workforce, and unlocking new production efficiencies essential to delivering the Navy’s growing fleet.”
Path Robotics’ physical AI enables shipbuilding operations to accelerate throughput and strengthen the maritime industrial base. Image: Path RoboticsHigh-Yield Production Robotics Agreements
The agreements will proceed in two stages: development and delivery.
During development, HII and the companies will qualify autonomous technologies for welding, painting, assembly, inspection and other fabrication processes for integration into a US Navy-standard production line.
In the delivery stage, HII will source shipbuilding work through the line based on cost, schedule, and quality, starting with small steel structures before expanding to larger units and modules.
HII plans to outsource more than 2.5 million hours of shipbuilding work in 2026, 30 percent more than in 2025, while expanding its network of assembly partners to move more work outside its shipyards before final assembly.
“For years, we've believed physical AI could fundamentally change manufacturing,” CEO and co-founder of Path Robotics Andy Lonsberry said.
“HYPR is a powerful validation of our vision — that physical AI can scale shipbuilding capacity in one of the world's most demanding production environments.
Together with HII, we're proud to be building the shipyard of the future, unlocking distributed shipbuilding, and establishing a blueprint for strengthening America's maritime industrial base.”
Naval Expansion Push
The HYPR program supports a broader US defense effort to modernize shipbuilding, expand naval capacity and adopt scalable manufacturing methods for the “Golden Fleet.”
The US Navy’s 30-year shipbuilding plan aims to grow the fleet beyond 450 vessels in the early 2030s while reforming acquisition and rebuilding the maritime industrial base.
The service currently operates 291 battle force ships, below the legally mandated 355, with officials citing rising costs, program delays, and shifting requirements as causes.
Under its financial year 2027–31 plan, the navy has allocated $77.8 billion for surface combatants, $124.9 billion for submarines, $22.3 billion for aircraft carriers, and $29.3 billion for amphibious ships.
The plan also includes $15 billion for 21 auxiliary and logistics vessels, along with investments in 47 medium unmanned surface vessels and 16 extra-large unmanned underwater vehicles.
