Waymo has announced a partnership with Hyundai to integrate self-driving technology into a fleet of modified Ioniq 5 electric vehicles, with plans for a launch in late 2025.

The Ioniq 5 vehicles will be produced at a new facility near Savannah, Georgia, and will receive Waymo's next-generation self-driving technology in Detroit and Phoenix.

As part of its expansion in the U.S., Waymo, a subsidiary of Alphabet, will incorporate Hyundai's electric Ioniq 5 SUVs into its growing robotaxi fleet.

Tekedra Mawakana, co-CEO of Waymo, expressed enthusiasm for the partnership, emphasizing Hyundai's commitment to sustainability and electric vehicles.

This collaboration marks the beginning of an ongoing partnership, with both companies exploring further opportunities for joint projects.

Hyundai is also developing its own self-driving technology through its joint venture Motional, which has faced challenges this year, including layoffs and leadership changes.

The relationship between Hyundai, as both a supplier to Waymo and owner of Motional, raises questions about potential conflicts of interest.

This partnership comes just ahead of Tesla CEO Elon Musk's announcement of a new robotaxi product and ride-hailing platform for Tesla owners.

Waymo recently hired Daniel Ho, Tesla's former head of vehicle programs, as a Program Director, which could enhance its robotaxi offerings.

Currently, Waymo operates ride-hailing services in Phoenix, San Francisco, and Los Angeles, with plans to expand to Austin and Atlanta next year.

Waymo's existing fleet includes over 1,000 electric Jaguar I-PACE SUVs, but production of that model has ended, prompting the need for new vehicles like the Ioniq 5.

Motional is currently behind Waymo in the robotaxi development race, with most competitors lagging behind Waymo's advancements.