Hyundai Motor Group to Invest 31 Trillion Won in the US Over 4 Years... Resolving Tariff Risks (Comprehensive)

Establishing a 1.2 Million Unit Vehicle Production System
2.7 Million Ton Steel Mill in Louisiana
Participation in SMR Construction in Michigan

Hyundai Motor Group will invest $21 billion, approximately 30.8 trillion KRW, in the United States over the next four years starting this year. The group plans to increase the production capacity of Hyundai Motor Group Meta Plant America (HMGMA), which is set to hold its completion ceremony this week, from 300,000 units to 500,000 units, establishing a production system capable of manufacturing 1.2 million vehicles. This is expected to significantly reduce tariff burdens immediately.

In Louisiana, an electric furnace integrated steel mill will be built to stabilize the supply chain connecting 'steel-automobiles,' and cooperation with U.S. companies will be expanded in future industries such as robotics and artificial intelligence (AI).

Hyundai Motor Group Chairman Chung Eui-sun (second from left) is giving a speech on investment in the United States on the 24th (local time) in the Roosevelt Room of the White House in Washington DC, while U.S. President Donald Trump (third from left) watches. Photo by AP Yonhap News

On the 24th (local time), Chung Euisun, Chairman of Hyundai Motor Group, visited the White House in the United States and met with President Donald Trump to announce this investment plan, describing it as "the largest investment since we entered the U.S. market."

He added, "Since Hyundai Motor Group entered the U.S. in 1986, we have invested over $20 billion and created more than 570,000 jobs across all 50 states. All these efforts aim to accelerate the localization of supply chains within the U.S., expand operations, and increase the American workforce."

President Trump said, "Hyundai will produce steel in the U.S. and make cars in the U.S. As a result, they will not have to pay tariffs," adding, "This investment clearly demonstrates how powerful tariffs can be."

Additionally, Chairman Chung announced plans to purchase approximately $3 billion worth of U.S. LNG to support the American energy industry and strengthen energy security.

Through this investment, Hyundai Motor Group aims to respond to the policies of the Donald Trump administration, such as rebuilding American manufacturing, while expanding business opportunities in various fields and strengthening its status as a top-tier company in the U.S. The large-scale investment by Hyundai Motor Group is expected to promote economic revitalization in both Korea and the U.S. and further expand economic cooperation between the two countries.

Establishing a 1.2 Million Unit Production System... Building an Electric Furnace Steel Mill

Hyundai Motor Group's investment in the U.S. is divided into the automotive, parts/logistics/steel, and future industries/energy sectors. In the automotive sector, Hyundai Motor Group will invest a total of $8.6 billion to establish a 1.2 million unit local production system in the U.S.

Starting with the Hyundai Motor Alabama plant (360,000 units) which began operations in 2004, followed by the Kia Georgia plant (340,000 units) in 2010, and the completion of HMGMA (300,000 units) this year, Hyundai currently has a production capacity of 1 million units in the U.S.

First, production capacity will be expanded to a total of 500,000 units by increasing HMGMA by 200,000 units. The Alabama and Georgia plants will also undergo complementary investments such as modernization and efficiency improvements of production facilities to continuously produce high-quality new vehicles. The goal is to firmly establish the foundation for a 1.2 million unit production system in the future.

In the parts, logistics, and steel sectors, Hyundai Motor Group’s parts, logistics, and steel affiliates, which entered the U.S. market alongside Hyundai and Kia, will spend a total of $6.1 billion to strengthen the supply chain between finished vehicles and parts suppliers. Facilities will be expanded in line with the increase in HMGMA production capacity to raise the localization rate of parts and promote local procurement of key electric vehicle components such as battery packs.

A 2.7 million ton electric furnace steel mill will be constructed in Louisiana. This steel mill, specialized in low-carbon automotive steel sheets, will enhance resilience against uncertain external risks such as tariffs by locally supplying high-quality automotive steel sheets. It is also expected to secure new growth engines in the steel sector by generating stable profits based on robust steel demand.

In the future industries and energy sector, $6.3 billion has been allocated. Cooperation with U.S. companies related to new technologies such as autonomous driving, robotics, AI, and Advanced Air Mobility (AAM) will be expanded, and commercialization of Hyundai Motor Group’s U.S. subsidiaries Boston Dynamics, Supernal, and Motional will be accelerated.

Hyundai Motor Group is conducting various projects to intelligentize core mobility solutions such as SDV (Software Defined Vehicle) and robotics in collaboration with NVIDIA, and to strengthen the application of AI technology across business operations. It is also working with U.S. autonomous driving company Waymo to expand the autonomous taxi service 'Waymo One' using the Ioniq 5 produced at HMGMA in the U.S.

Boston Dynamics and the 'Robotics and AI Institute (RAI)' are enhancing capabilities to develop intelligent robots based on reinforcement learning. Supernal is collaborating with several U.S. states to test unmanned aircraft with the goal of commercializing AAM aircraft by 2028. Motional, Hyundai’s U.S. autonomous driving subsidiary, is advancing Level 4 and above autonomous driving technology using autonomous driving data collection and AI model training.

Hyundai Motor Group is also discovering promising startups in future technologies and making proactive investments. It is supporting nuclear and renewable energy sectors and expanding electric vehicle charging stations. Hyundai Engineering & Construction is pushing forward with the construction of a Small Modular Reactor (SMR) in Michigan in partnership with Holtec International by the end of this year. Hyundai Engineering acquired the rights to a solar power plant project in Texas last year and is accelerating preparations for commercial operation in the first half of 2027. Through IONNA, an alliance of electric vehicle ultra-fast charging services with U.S. automakers, Hyundai plans to expand charging station installations.

Record High Investment of 24.3 Trillion KRW in Korea

Hyundai Motor Group is also expanding domestic investment. Earlier this year, Hyundai Motor Group announced it would invest a record high of 24.3 trillion KRW this year to strengthen future competitiveness centered on Korea as a mobility innovation hub. This amount is more than 19% higher than the 20.4 trillion KRW invested in 2024. The investment is divided into 11.5 trillion KRW for research and development (R&D), 12 trillion KRW for capital expenditure, and 800 billion KRW for strategic investments.

R&D investment will be used to secure core future capabilities such as product competitiveness enhancement, electrification, SDV, hydrogen products, and fundamental technology development. Capital expenditure will be allocated to expanding production facilities for electric vehicle (EV) transition and new models, manufacturing technology innovation, and infrastructure improvements such as customer experience centers. Strategic investments will be made to enhance competitiveness in core future businesses such as autonomous driving, software, and AI.

In particular, large-scale investments will be made in building EV-dedicated plants. The Kia Hwaseong EVO Plant is scheduled to be completed in the second half of this year, where purpose-built electric vehicles (PBV) customized for customers will be produced in earnest. The Hyundai Ulsan EV-dedicated plant, under construction with a target operation date in the first half of 2026, plans to mass-produce various models starting with a large SUV electric vehicle.

A Hyundai Motor Group official said, "The large-scale investments in Korea and the U.S. reflect our determination not to be deterred by uncertain business environments but to strengthen future competitiveness through active challenges, continuous change, and innovation, while creating new possibilities for humanity. We will create future opportunities through bold investments, internalization of core technologies, and strategic cooperation with top-tier companies domestically and internationally."