Walmart U.S. and Symbotic Sign $6 Billion Warehouse Automation Expansion Agreement

en.Wedoany.com Reported - On October 29, Walmart U.S. and warehouse automation company Symbotic signed an expanded commercial cooperation agreement involving an initial spending commitment of approximately $6 billion over the coming years. Under the agreement, Symbotic will deploy additional automation capabilities at 25 Walmart U.S. regional distribution centers, with the scope of cooperation also covering subsequent projects across Walmart's global supply chain network, with related work to be implemented in phases at multiple locations.

The agreement simultaneously establishes supplementary procurement agreements for multiple markets, covering automated material handling systems for ambient-temperature operating areas of distribution centers and fulfillment centers in the United States and select international markets in the Americas. The related procurement will be executed separately by Symbotic and its affiliates and corresponding Walmart affiliates, involving system supply and subsequent deployment at different locations.

The two parties also signed a supplementary technology development agreement under which Walmart has committed $125 million to support research and development of next-generation warehouse racking technology, as well as supporting picking technology, goods flow processes, and inventory management capability development. This funding is included in the approximately $6 billion initial spending commitment and constitutes a dedicated R&D arrangement under this agreement.

In addition to system procurement and R&D expenditures, Walmart and relevant affiliates will separately pay for software licensing and system support, equipment operation and maintenance, additional agreed technical support, spare parts procurement, and related fees in accordance with the contractual arrangements for each automation system. These fees will be executed based on the actual systems and services procured and are agreed upon separately from the initial procurement and R&D commitments.

The new agreement allows both parties to continue signing supplementary procurement agreements during the contract term to add automation system orders, or to initiate other technology development projects through new supplementary R&D agreements. The initial commitment may in principle only be reduced with the written consent of both parties, subject to contract termination rights and other provisions.

The existing master automation agreements signed in May 2022 and January 2025 remain in effect unless explicitly modified, replaced, or superseded by this new agreement. The approximately $6 billion represents a new arrangement in addition to the original procurement commitments. Symbotic expects that this cooperation may increase its future order backlog by up to $6.92 billion.