Hyundai Motor Group recently announced a significant investment of $21 billion in the U.S. from 2025 to 2028 with President Donald Trump at the White House. The group will invest a total of $9 billion to establish an annual production capacity in the U.S. of 1.2 million vehicles across its automotive brands, Hyundai Motor, Kia and Genesis.
In addition, Hyundai plans to invest in improving its production facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, to further enhance its customer-centric approach in delivering high-quality automobiles.
“This investment is a clear demonstration that tariffs very strongly work. And I hope other things also, but the tariffs are bringing them in at levels that have not been witnessed,” Trump said during a press briefing. The president added that Hyundai will not be subject to any tariffs because the company will be producing steel in the U.S. and making the cars in America.
Hyundai to expand U.S. steel manufacturing
Hyundai also revealed that it will allocate $6 billion to increase the localization rate of automotive components including core parts for electric vehicles (EVs) to form an auto cluster following expansion of the group’s production facilities, as well as strengthening group logistics to ensure robust supply chains and investing in steel production in the U.S.
Hyundai Steel, the group’s steel affiliate, will also construct an Electric Arc Furnace (EAF) steel mill in the state of Louisiana, capable of producing 2.7 million tons of steel annually. This facility will produce low-carbon steel sheets using the abundant supply of steel scrap in the U.S. with the aim of enhancing the group’s agility and flexibility in response to external uncertainties.
The group announced that it will also invest $6 billion to drive innovation and expand strategic partnerships with U.S. companies in areas including autonomous driving, robotics, artificial intelligence (AI) and advanced air mobility (AAM). As part of this commitment, the group will also invest in energy infrastructure projects to secure new business opportunities and contribute to the development of sustainable energy generation.
Through these investments, Hyundai expects to create 14,000 new direct full-time jobs in the U.S. by 2028. The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries.
Read: U.S. Tesla sales dip as overall EV sales grow 10.5 percent in February
Automakers plan major U.S. investments
Following the announcement, the White House stated: “Hyundai is far from the only automaker planning major investments as President Trump leverages tariffs to remake the U.S. into a global manufacturing powerhouse.”
The statement noted that Stellantis announced a $5 billion investment in its U.S. manufacturing network, including re-opening an Illinois manufacturing plant as it pledges to increase domestic vehicle production. Volkswagen is also considering shifting production of the high-end Audi and Porsche brands to the U.S., while Honda is expected to produce its next-generation Civic hybrid model in Indiana.
Furthermore, Nissan is considering moving production from Mexico to the U.S., while Rolls-Royce is expected to “ramp up” production in the U.S. by hiring more American workers and expanding its U.S.-based operations. In addition, Volvo is considering expanding its U.S.-based output.
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