Hyundai Motor Group has announced a major $21 billion investment in the United States over the next four years, marking its largest-ever commitment to the country. The move comes as the South Korean conglomerate accelerates its efforts to localise production, strengthen its US supply chains, and expand its footprint in future-focused industries including electric vehicles, robotics, and artificial intelligence.
The investment—announced Monday at the White House alongside President Donald Trump—will span from 2025 to 2028 and is expected to generate more than 100,000 direct and indirect jobs, including 14,000 new full-time positions at Hyundai itself.
Three-way investment: cars, parts, and the future
The $21 billion will be split across three broad areas:
- $9 billion will go toward expanding vehicle production across Hyundai’s US brands—Hyundai, Kia, and Genesis—boosting output to 1.2 million vehicles annually. This includes upgrades to existing plants in Alabama and Georgia.
- $6 billion will support localisation of automotive parts, with a focus on EV battery packs and steel. A key project is the construction of a $5.8 billion steel plant in Louisiana, which will use recycled scrap metal to produce low-carbon steel. The facility will employ more than 1,400 workers and support Hyundai’s US manufacturing.
- $6 billion will target future industries—autonomous driving, robotics, AI, advanced air mobility—and energy infrastructure. Initiatives include collaborations with Boston Dynamics and NVIDIA, investment in the IONNA EV charging alliance, and development of next-generation urban air vehicles through Hyundai’s Supernal affiliate.
Timing and political context
The announcement comes just days before 2 April, the deadline Trump has set for the rollout of sweeping new tariffs targeting countries with large US trade surpluses—including South Korea. Hyundai’s announcement echoes recent moves by other international firms seeking to ramp up their US presence and avoid potential trade penalties. Taiwan Semiconductor Manufacturing Co., SoftBank, and Apple have also made recent high-profile investment pledges.
Trump praised the Hyundai commitment as evidence that tariffs “very strongly work” and credited his economic policies for encouraging foreign investment. Hyundai Chairman Euisun Chung, present at the White House ceremony, said the project was first discussed during his 2019 meeting with Trump in Seoul and described the expansion as a “shared vision for American industrial leadership.”
Wider implications
The investment significantly deepens Hyundai’s US footprint. The group already operates two major vehicle plants and has just opened a third facility in Georgia—now part of the largest economic development project in the state’s history. That plant, Hyundai Motor Group Metaplant America (HMGMA), began construction just two and a half years ago and is now operational.
Hyundai’s move also puts pressure on other automakers as the company expands its EV production capabilities. It is already among the top EV sellers in the US, competing directly with Tesla and BYD.
