Hyundai Motor Group expands investment in US production
According to Hyundai, nine billion US dollars will be allocated to expanding vehicle production, to achieve an annual production capacity of 1.2 million vehicles across the Hyundai, Kia, and Genesis brands in the United States. A further six billion US dollars will be invested in increasing the localisation rate of automotive components, including key parts for electric vehicles such as battery packs. The total investment of 21 billion US dollars currently equates to around 19.5 billion euros.
A further six billion US dollars will be invested to expand “future industries and strengthen external partnerships and energy infrastructure”, as announced by Hyundai’s headquarters in Seoul. This also includes investments in charging infrastructure for electric vehicles, although no specific sum has been disclosed. Hyundai’s future-oriented investments also encompass its partnership with Nvidia to accelerate the development of AI solutions for next-generation mobility – including autonomous driving and robotics – as well as its collaboration with Boston Dynamics in the field of robotics. Additionally, Hyundai is supplying autonomous vehicles to Waymo and advancing its air taxi projects through its subsidiary Supernal. In short, the company’s ambitions extend far beyond just cars.
To put the total investment of 21 billion US dollars over the next three years into perspective: Since entering the US market in 1986, Hyundai has invested a total of 20.5 billion US dollars in the country, according to the company. This amount, accumulated over 39 years, will now effectively be doubled within just three years.
With these investments, the company expects to create 14,000 new full-time direct jobs in the United States by 2028. In total, Hyundai anticipates that the initiative will generate “more than 100,000 direct and indirect jobs for the economy” across related industries, including suppliers and partners.
“This commitment reflects the Group’s strategic focus on expanding its manufacturing capabilities, advancing future technologies, and enhancing energy infrastructure in America,” the South Korean company announced. “The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce.” The company also expresses gratitude to its “American partners, employees, and communities” and emphasises its pride “to stand with you, and proud to build the future together.”
The substantial investments must, of course, be viewed in the context of the current geopolitical situation. Under former US President Joe Biden, many automakers have invested in US production and supply chains to meet the requirements for electric vehicle incentives. Under President Donald Trump, various tariff threats and the tariffs already imposed played a significant role. With its investments in US facilities, Hyundai aims to become more flexible in the face of “external uncertainties.” One example is Hyundai Steel, the company’s steel subsidiary, which will build a steel plant in Louisiana capable of producing 2.7 million tonnes of steel annually, including from locally available scrap metal. Even with this raw material, Hyundai intends to take greater control over its supply chain in the future.
In recent years, Hyundai already made significant investments, such as retrofitting existing US plants for electric vehicle production and establishing battery partnerships with cell manufacturers for local US production. Later this week, the grand opening ceremony of the Hyundai Motor Group Metaplant America in Georgia is set to take place – marking the “completion of the largest economic development project in Georgia’s history, just two and a half years after breaking ground.” However, this will be a symbolic event, as electric vehicles have already been produced there since October 2024.
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