Hyundai Set to Invest $21 Billion in U.S.

Hyundai Motor Group plans to invest $21 billion for a variety of U.S.-based projects, including steel production and the expansion of its U.S. automotive production to 1.2 million vehicles annually. That more than doubles what the South Korean has invested since entering the U.S. market in 1986. More from Headlight.News.

Hyundai announced it will invest $21 billion for a series of projects based in the U.S., including a new steel mill set to go into Louisiana. It said it will raise to 1.2 million vehicles a year its production capacity in the U.S. The investment also aims to get robots into mass production and commercialize flying taxis.

The new figure more than doubles the amount of capital the South Korean carmaker has invested in the U.S. since it first began selling cars here in 1986.

“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” Hyundai chairman Euisun Chung said during an appearance at the White House alongside Pres. Donald Trump. “The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.”

What’s covered by the plan

The $21 billion in new capital covers a wide variety of projects including:

• $5.8 billion for a new steel plant in Louisiana, along with enhancements to parts and logistics operations;
• $9 billion to expand U.S. production to 1.2 million vehicles annually;
• $6 billion to expand “future industries and strengthen external partnerships and energy infrastructure, including EV charging.”

The steel plant is planned to produce 2.7 million metric tons annually to supply the group’s auto plants in Alabama and Georgia. Hyundai did not break out expansion plans at those various assembly operations.

Hyundai estimated the various investments will create over 100,000 direct and indirect jobs by 2028, “including 14,000 direct full-time jobs.”

Trump claims credit

The announcement at the White House came barely a week before Pres. Trump was set to announce new tariffs covering Canadian and Mexican autos and auto parts. He had also raised the threat of auto tariffs targeting other trade partners, including both the European Union and South Korea that could be announced in April.

The White House has signaled, however, that it may back away from enacting the 25% auto tariffs on Canada and Mexico, analysts suggesting the president is bowing to pressure from the auto industry which had warned the impact of higher prices would lead to a sharp slump in vehicle sales and the loss of U.S. jobs.

Nonetheless, Trump took personal credit for Hyundai’s planned investment, declaring during the White House ceremony that, “This investment is a clear demonstration that tariffs very strongly work.”

How much influence Trump actually had on Hyundai’s plans is a matter of debate. Work on projects as big as a steel plant can’t come together in short order, the president only inaugurated on January 20. Chung acknowledged his company actually began talking about the venture in 2019 and that it was part of long-term planning. But he added that making the announcement with Trump back in office made it “even more special.”

More Hyundai News

• First Drive: 2025 Hyundai Ioniq Five Gets Longer Range – and a Rear Wiper
• Hyundai Reveals Ioniq 9 3-Row EV
• Munoz Named Hyundai CEO as its First Non-Korean Chief Executive

More details on the Hyundai plan

A significant portion of the project Chung revealed this week involves collaborations with outside partners. Among the most notable:

• A partnership with NVIDIA to accelerate development of AI technology for use in mobility, autonomous driving and robotics;
• A collaboration with Boston Dynamics to expand its work in robotics, including the development of mass production;
• Supplying autonomous vehicles to Waymo, the self-driving ride-share company spun off by Google;
• Work involving Supernal, Hyundai’s flying taxi venture, with a goal of commercializing the program by 2028.

Skeptics

Investors rallied following the White House announcement, driving up shares of Hyundai and its affiliate Kia Corp. But there were some questions raised about the project, notably the steel mill, considering the heavy debt that the group’s Hyundai Steel subsidiary already has built up.

“It is not clear whether the investment will benefit Hyundai Steel in the future,” Lee Tae-hwan, an analyst at Daishin Securities, told Reuters.