Recently, demand for humanoid robots in China has surged, leading to a wave of large-scale supply contracts. In response, Morgan Stanley released its Humanoid Robots 100 report, projecting that the global humanoid robots market could reach as much as USD 60 trillion within the next decade. This article examines the potential of humanoid robots as an industrial mega trend, global technology development strategies, and Korea’s approach to this emerging sector.

Senior Researcher Jeoung-Heon Woo POSCO Research Institute

Humanoid Robots in History

Humanoid robots—machines designed to resemble humans—have appeared throughout history, sometimes as loyal assistants, other times as perceived threats. Examples include the bronze giant Talos from ancient Greek and Roman mythology, the water-clock-powered automaton of China’s Han Dynasty, and Leonardo da Vinci’s “robot knight” from the Renaissance. Across ancient civilizations, human-like machines have emerged in various forms.

Interest in humanoid robots has endured for centuries, accompanied by caution over potential risks. Notably, science fiction writer Isaac Asimov introduced the Three Laws of Robotics in his 1942 short story Runaround, raising philosophical questions about the relationship between humans and machines.

The rapid advancement of AI in recent years suggests that robotics may evolve toward a humanoid robots-centered future. While a “machine” is generally defined as a tool designed to perform production activities using power, a “robot” is an intelligent machine capable of making autonomous decisions under certain conditions.

Modern humanoid robots go further, combining advanced AI with a human-like form factor—a body structure modeled on human anatomy—allowing them to learn work methods, optimize performance, and actively assist in a wide range of human activities.

Physical AI: Extending Intelligence into the Real World

The concept of Physical AI is also gaining attention. Physical AI refers to AI embedded in physical devices—such as robots or autonomous vehicles—that interact directly with the real world. Traditional AI communicated with humans through digital interfaces like text or images, but Physical AI operates in real-world environments, collaborating with humans, perceiving surroundings, and responding accordingly. At CES 2025, NVIDIA CEO Jensen Huang identified Physical AI as a major future growth driver, emphasizing NVIDIA’s role at the center of this technological shift.

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Why the World is Paying Attention to Humanoid Robots

Humanoid robots are gaining social acceptance and technological attention for two main reasons: form factor suitability and socio-economic potential.

1. Form Factor Perspective

Robots designed for specific repetitive tasks benefit from specialized form factors. However, for Physical AI performing diverse, non-specialized actions in real-world environments, a human-like form factor is advantageous because our physical infrastructure is built for human proportions.

Door handles, stair dimensions, and control panel placements are all designed for human use. Humanoid robots can operate in these environments without costly infrastructure changes, offering high versatility. In contrast, having different standards for each form factor would be inefficient.

2. Socio-Economic Perspective

Humanoid robots’ human-like appearance enables a wide range of human-robot collaboration scenarios, extending beyond manufacturing into customer service, caregiving, education, and guidance. Recent advances in language processing, facial expression recognition, and gesture control have improved emotional engagement, signaling the evolution of robots into social entities.

However, psychological barriers remain. Masahiro Mori, Professor Emeritus at Tokyo Institute of Technology, proposed the Uncanny Valley theory, which suggests that robots that look too human can cause discomfort. This highlights the need to consider psychological acceptance and emotional distance alongside technical perfection.

Economically, humanoid robots are highly promising. Their development requires not only AI but also sensors, actuators, motion control systems, and energy supply technologies. These demands drive innovation across multiple industries, making humanoid robots development a potential growth engine for the future.

Humanoid Robots Industry Structure and Potential Players

Morgan Stanley’s February 2025 report divides the humanoid robots industry value chain into three core areas: Brain, Body, and Integrator, and identifies potential players in each.

• Brain: Combines software and hardware. Software includes AI models, data science, simulation technology, and vision software. Hardware includes memory and vision computing.
• Body: Includes actuators, components, motors, sensors, batteries, power semiconductors, analog semiconductors, aluminum casting, connectors, heat treatment, and automation systems.
• Integrator: Companies that assemble and integrate the brain and body into finished products. Potential players include Hyundai Motor, Boston Dynamics, Apple, Samsung Electronics, LG Electronics, Alibaba, Amazon, Naver, ABB, and KUKA.

The industry can also be categorized into core components and modules, finished product assembly, and service areas, with the service sector expected to see diverse business models emerge.

Global Technology Leaders: Tesla and NVIDIA and Hyundai Motor

▲ Tesla’s Optimus Gen 2 (Source:Tesla’s official YouTube channel)

The emerging humanoid robots industry is being led by Tesla and NVIDIA, each pursuing distinct strategies.

Tesla is leveraging its expertise in EV production and autonomous driving to develop Optimus, a humanoid robot intended to automate production lines. First unveiled at Tesla AI Day in 2021, Optimus has evolved to perform a variety of tasks. The 2024 Optimus 2 features 40 actuators—12 in the hands alone—allowing it to perform delicate actions such as cracking an egg. Tesla plans to enter the humanoid robots sales market in 2026.

NVIDIA, on the other hand, aims to dominate the humanoid robots “Brain” platform rather than build its own robot. Its Jetson Thor computer, based on the latest Blackwell GPU architecture, enables large-scale AI inference and vision-based decision-making directly on local devices—capabilities previously limited to server environments.

Tesla’s approach resembles Apple’s integrated hardware-software model, while NVIDIA’s strategy is akin to Android’s platform dominance.

▲ Hyundai Motor Company unveils humanoid robot “Atlas” at CES 2026(Source:Hyundai Motor Group official YouTube channel)

In addition to these global leaders, Hyundai Motor introduced its humanoid robot Atlas at CES 2026. Purpose-built for industrial and logistics operations, Atlas offers advanced mobility, precise manipulation capabilities, and seamless integration with Hyundai’s autonomous vehicle and smart factory ecosystems. The debut underscores Hyundai’s ambition to position itself as a key integrator in the humanoid robots value chain, capitalizing on its manufacturing expertise, robotics R&D, and global production footprint.

Securing Leadership in the Humanoid Robots Value Chain

Following smartphones and EVs, the world has lacked a clear driver of technological innovation—until humanoid robots emerged as the next catalyst. As a convergence of cutting-edge technologies, humanoid robots are recognized as a key area for future growth, though challenges remain in cost competitiveness and safety in human-machine collaboration.

Importantly, the humanoid robots industry’s impact will extend beyond AI and software into materials, components, and services. Development and standardization will require core components that meet both functionality and reliability, along with mass production capabilities. In the service sector, opportunities will arise in humanoid robots deployment, human-robot collaboration models, and humanoid robots training and operation.

In June 2025, the Korean government launched the K-Humanoid Robots Alliance, a national robotics and AI consortium involving over 40 domestic industry, academic, and research institutions. AI companies and experts are collaborating with universities to develop AI models for robot manufacturers, with field trials supported by demand-side companies such as POSCO Group.For example, Aei Robot has signed MOUs with POSCO E&C and HD Hyundai Mipo Shipyard to develop humanoid robots for construction sites and shipyards.

Humanoid robots have moved beyond simple robotics to become a central axis of next-generation industrial innovation. Understanding and responding strategically to the technological, industrial, and service trends surrounding their evolution is more important than ever.

EVs will make up 54 percent of new car sales in 2040. (Source: Electrek)

Even though EVs make up about 1 percent of total new car sales in the U.S., EVs are on a steady, steep path upwards. According to a report by Bloomberg New Energy Finance, EVs will make up 54 percent of new car sales by 2040, and by 2029, EVs will be cheaper to buy than gasoline and diesel-fueled cars.

The figures are significant and will translate into a sharp increase in demand for rechargeable batteries and their materials.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

The Evolution of EV Batteries

Before diving into the juicy details, it’s always helpful to cover the basics. Batteries are made up of 3 main components. The anode, or negative electrodes, the cathode, or positive electrodes and some type of electrolyte through which the electrodes travel to release chemical energy.

A simple battery can be made out of a potato, copper penny and galvanized nail. (Source: Tested)

The first rechargeable battery, lead-acid battery, was invented in 1859 by a physicist named Gaston Plante. Lead dioxide was the cathode material used, and lead was the anode material with a liquid solution of sulphuric acid and water as the electrolyte. The materials were affordable and the battery was applied to many early models of EVs, including early models of the Tesla Model S.

Another widely used battery that came after the lead-acid battery is the nickel-metal hydride (NiMH) battery developed at the Battelle-Geneva Research Center in 1967. Nickel hydroxide was used as the cathode material while a hydrogen-absorbing alloy was used as the anode material. A liquid solution served as electrolytes. The research for NiMH batteries was extensive, and funded jointly by Daimler-Benz and Volkswagen AG. The batteries were also applied to many EV models such as the Toyota Prius, prior to 2015.

The Advent of Lithium-Ion Batteries

The introduction of lithium-ion batteries was a game-changer. Sony first introduced them in 1991, and today, most EVs have them, including the Tesla Model 3. The batteries consist of lithium-cobalt oxide cathodes, graphite anodes and the electrolyte is usually a solution of lithium salt and an organic solvent, though some automakers are experimenting with solid-state electrolytes.

The Tesla Model 3 has a lithium-ion battery. (Source: Green Car Reports)

Compared to its predecessors, lithium-ion batteries have the highest amount of stored energy and specific power, which is kind of like horsepower for electric cars. As a result of improved technology and lower costs, lithium-ion batteries are projected to make up 70 percent of the total rechargeable battery market by 2025, which will be worth roughly USD 112 billion.

Good as Gold

It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year.

In 2016, Australia topped the list for the most lithium produced with 14,300 metric tons. China and Zimbabwe are also top contenders producing 2000 and 900 metric tons in 2016, respectively. Then, there are the South American countries of Argentina, Chile, and Bolivia, also referred to as the “lithium triangle,” and home to 75 percent of the world’s lithium supply.

Workers at a brine pool at the Rockwood Lithium Plant on the Atacama salt flat. (Source: Reuters)

Does that mean the world has enough lithium to fuel the cars of tomorrow? The answer is yes, but there aren’t enough mines to produce them. In order to prevent environmental damage and the exploitation of unprotected workers, lithium producers have to get smart about lithium mining and production.

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POSCO’s Lithium Production  

Starting in 2010, POSCO and the Research Institute of Industrial Science & Technology (RIST) teamed up to develop a chemically based lithium extraction technology. The innovation cut down extraction time from up to 18 months down to between 8 hours and 1 month, delivering a purity rate of 99.9 percent. The recovery rate of lithium also increased to over 80 percent. POSCO is the world’s first corporation to commercialize the technology.

SEE ALSO: Lithium Rocks: POSCO at Forefront of a Green Energy Future

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s battery production factory in Korea.

It’s also at the heart of the lithium triangle. POSCO currently operates facilities in Chile’s Maricunga Salt Lake, Argentina’s Cauchari Salt Lake and Argentina’s Pozuelos Salt Lake, which alone will boost POSCO’s annual lithium production to 2,500 tons. POSCO also opened its first battery production plant in Korea earlier this year.  

The future of EVs is promising thanks to advancements being made in electric batteries, and there’s a lot at stake for the health and well being of future generations. Increasingly, the availability and costs of EV battery materials will play a vital role in market outcomes and widespread EV adoption. It is vital for companies like POSCO to provide abundant, sustainable and cost-friendly EV battery materials so automakers can continue to enhance the batteries of tomorrow’s cars.

Cover photo courtesy of Quartz.

Stephen Zoepf is the executive director at the Center for Automotive Research at Stanford University.

To kick off the forum, Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University gave a presentation called “Electric Vehicles: Adapting to a Changing Marketplace” to share his insights on what future markets will look like and implications for automakers, suppliers as well as consumers.  

Here are the key takeaways.

The Future is Going to Look Very Different

According to a report by RethinkX, an independent research group, 6 trillion U.S. passenger miles will be driven in 2030, up 50 percent from 2021. Of those miles, 95 percent will be driven in self-driving, electric and shared vehicles and only 5 percent of those miles will be driven by internal combustion engine (ICE) vehicles.

The report goes on to say that autonomous EVs (A-EV) will make up 60 percent of the U.S vehicle stock, and those vehicles will be part of a shared-mobility service. As more people start to share cars, the overall number of vehicles on U.S. roads will drop from 247 million in 2020 to 44 million in 2030.

SEE ALSO: Going Autonomous: The Transformation of the Transportation Industry

The change is already happening. In 2016, shared-mobility companies such as Uber and Lyft drove 500,000 passengers per day in New York City, which is triple the number of passengers from 2015. Today, more and more automakers like Tesla and GM are also entering the shared-mobility market.

EVs are already becoming prominent in major cities around the world. (Source: Time)

The findings illustrate a future where people drive more miles with fewer cars, which are fueled by electricity, and shared instead of owned. It’s a radical visualization of the future, but one that is driven by economic forces.

By 2021, shared vehicles will be 4 to 10 times cheaper per mile than private vehicles, and American households will save an average of USD 5600 every year by switching to shared EVs from cars fueled by gas, according to RethinkX.

Zoepf shared another report by ARK investment Management which echoes the finding above- in the next ten years, people will drive three times more kilometers using half the number of cars and the number of EVs on the road will increase 10 fold.

What It Means for Car Manufacturers and Suppliers

A shrinking vehicle fleet consisting of mostly EVs can only mean one thing: a major disruption to the current automotive market.  

Right now, the average lifecycle of a car in the U.S. is 11 years. However, the majority of a car’s total mileage is driven in its early years. It’s the same for shared vehicles, but they are driven about 80,000- 90,000 km per year, 10 times the distance of privately-owned cars. What this shows is a compression of the vehicle lifespan in its first 3 to 4 years.

These statistics pose critical concerns for automakers.

Will overall vehicle sales decrease in the coming future? According to Zoepf, that’s the wrong question to ask. Instead, automakers should be asking “will I make money?” Automakers have a couple of choices. They can either adapt early on and manufacture EVs and/or A-EVs at a competitive price, or become a shared-mobility provider. Early movers such as Tesla, GM and Volvo are already shifting their business strategies to fit these models.

GM recently launched Maven, a car-sharing service. (Source: The Verge)

Another question to ask is how these trends will affect vehicle design. With shortened vehicle life-cycles, manufacturers can either design cars to last only 3 to 4 years for quick replacements, or opt for the aviation model where the vehicle will be built to last, but the interior parts, such as seats, will be replaced frequently. Whatever route manufactures choose to take, gaining a competitive edge in vehicle and service quality early on will be key.

What Will This Mean for Vehicle Material Suppliers?

If building cars to last is no longer a primary priority, will car makers downgrade their materials? The short answer is not a chance.

Through a customer survey study Zoepf conducted of 60,000 Zipcar customers, he showed that the number one factor when choosing a car is safety. However, there is no one, ideal model or type of car that is preferred in a shared mobility framework. The purpose of the trip determines the type of vehicle, and the success of a shared mobility service provider will depend on the variety of cars it can provide – all with competitive safety ratings.

POSCO ICT already has ChargEV stations set up across Korea. (Source: POSCO ICT)

The supplier’s role will be to continue providing high-quality materials that can boost the safety and cost competitiveness of future vehicles. Steel suppliers have to keep developing lightweight and high-strength steels like POSCO GIGA STEEL, and research new materials that can boost the competitiveness of EVs such as POSCO’s Hyper NO for motor cores, battery materials and POSCO ICT’s EV charging service and infrastructure.

There remain numerous challenges that lie ahead for a greener and safer future with EVs and A-EVs, and it might take longer than experts predict for lawmakers, corporations and consumers to all agree on an optimal mobility model. However, change is already underway and automakers and suppliers alike need to strategize and adapt early on to take advantage of the upcoming opportunities.

For more information on how advanced automotive steel can benefit automakers looking for lightweight and sustainable steel solutions, take a look at our infographic on POSCO GIGA STEEL or read the full report here. 

Cover photo courtesy of GOV.UK.