Hyundai Motor Group is set to make a significant commitment to the US market, pledging a $21 billion investment between 2025 and 2028. The initiative underscores the South Korean automaker’s ambition to bolster its manufacturing footprint, accelerate technological innovation, and expand energy infrastructure in the United States.
This latest infusion builds upon Hyundai’s cumulative $20.5 billion investment since its U.S. debut in 1986.
“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” the company said in a statement. “This investment will expand our operations and workforce in the U.S. We are proud to stand with our American partners, employees, and communities to build the future together.”
Scaling Up Production Capacity
A key component of the investment will be the expansion of Hyundai’s automotive production capabilities. The company will allocate $9 billion to increase its U.S. annual production capacity to 1.2 million vehicles, spanning its Hyundai, Kia, and Genesis brands.
Additionally, Hyundai plans to enhance its existing facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, to better serve its American customers.
Strengthening Supply Chain Resilience
To support its growing U.S. operations, Hyundai will invest $6 billion to localize the production of critical automotive components, particularly for electric vehicles (EVs). The funds will help establish a regional auto cluster, fortify supply chain logistics, and expand domestic steel production.
Hyundai Steel, the company’s steelmaking subsidiary, will construct an Electric Arc Furnace (EAF) steel mill in Louisiana. The facility, expected to produce 2.7 million tons of low-carbon steel annually, will leverage America’s abundant steel scrap supply to ensure greater flexibility amid global market fluctuations.
Advancing Future Technologies and Energy Infrastructure
In a bid to cement its leadership in next-generation mobility, Hyundai is earmarking another $6 billion to develop autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM) technologies. Key initiatives include:
- Expanding robotics capabilities through Boston Dynamics and establishing mass production systems for robotic components
- Partnering with NVIDIA to accelerate AI-driven mobility solutions, including self-driving technology
- Advancing R&D with its U.S.-based affiliate, Supernal, to commercialize an electric vertical takeoff and landing (eVTOL) vehicle by 2028
- Supplying autonomous robotaxis to Waymo and co-developing self-driving services with Aptiv
- Investing in mobility, robotics, and AI startups through venture capital and other funding mechanisms
Hyundai’s commitment also extends to energy infrastructure investments, which will support the expansion of renewable energy use and sustainable development. The company plans to:
- Partner with Hyundai Engineering & Construction and Holtec International to develop Small Modular Reactor (SMR) technology
- Enhance renewable energy infrastructure
- Expand EV charging networks through the IONNA charging alliance
Job Creation and Economic Growth
Hyundai anticipates its investment will create 14,000 new direct full-time jobs in the U.S. by 2028. The broader economic ripple effect is projected to generate over 100,000 jobs across related industries.
This week, Hyundai will mark a milestone with the grand opening of its Hyundai Motor Group Metaplant America in Georgia, the largest economic development project in the state’s history. The $5.54 billion facility, completed just two and a half years after breaking ground, is expected to play a crucial role in Hyundai’s vision for sustainable and technologically advanced manufacturing in the United States.
Through these initiatives, Hyundai Motor Group continues to solidify its position as a major force in the American automotive and industrial landscape, demonstrating a long-term commitment to economic growth, innovation, and sustainability.