Henry Wang, SKF president of the industrial region in China and North-East Asia, is pictured.

SKF is looking to work its way into the expanding Chinese robotics market with a recently announced agreement with Leaderdrive (LD), a global manufacturer specializing in precision robotic components.

The companies are working together on a venture in China focused on high-precision transmission components for robot joints. SKF officials said the investment is a step into the robotics industry, with a particular focus on the application of humanoids powered by Embodied AI technology in industrial settings. SKF will hold a 60% majority stake in the venture, which supports the group’s strategic focus on high-growth segments.

“This venture is well aligned with our strategy to drive profitable growth and strengthen our position in selected high-growth industrial segments. Targeting the industrial humanoid segment, this partnership provides the agility needed to respond to rapid market iterations, while leveraging our core technologies to support industry advancement”, says Henry Wang, SKF president of the industrial region in China and North-East Asia.

The venture will develop and supply high-precision transmission components for robot joints that support the reliability required for continuous operation of humanoids in industrial applications. LD contributes with deep application know-how in automation products and humanoid robotics, while SKF brings expertise in bearing technology, scalable manufacturing and global supply chains. Together, the companies aim to accelerate time to market and support readiness for volume production in a fast-growing market for Embodied AI Humanoids.

Headquartered in China, the venture will be positioned close to key supply chains and customers, enabling a responsive operating model. In addition to serving China, the world’s largest and fastest-growing humanoid robotics market, the venture will leverage SKF’s global sales network to target selected international markets, including Europe, Japan and the United States, SKF said in a news release. The venture is expected to become operational at the end of 2026.

“As the Embodied AI humanoids industry continues to scale, the stable delivery of reliable core transmission components becomes a critical differentiator. Building on our shared foundation in industrial applications, we can help drive technological development in these humanoids and create sustainable value in this expanding market”, says Yuyu Zuo, chairman of the board and executive director at Leaderdrive.

In June, the Associated Press reported Chinese companies have reported thousands of orders from both the government and private businesses for humanoids that can do such things as sort parcels at postal centers, as the country finds ways to cope with an aging population and rising labor costs. However, some experts believe demand for humanoids lags the capacity to build them. China and the United States dominate research for what Morgan Stanley estimates is a $5 trillion humanoid robots market, according to the AP. By some measures, the U.S. holds an upper hand in developing the artificial intelligence for such robots’ high-level computing power, or “brains.” But as the world’s factory floor, China leads in mass production capacity, supplies of hardware and harvesting of data for training robots.

Leader Harmonious Drive Systems, widely known as Leaderdrive, operates globally with around 1,000 to 1,800 employees and an annual revenue of roughly $86 million. It is China’s largest manufacturer of harmonic reducers, the precision joints used in robotic arms and humanoid robots, controlling an estimated 30% to 40% of the Chinese market. The company has an annual production capacity of more than 500,000 strain wave reducers. More than 60% of its clients are international, with manufacturing, research and development, and sales facilities stretching across China, Germany, Japan and Singapore.