South Korea’s Hyundai Motor Group has unveiled a massive $21 billion investment plan in the United States, an announcement made alongside President Donald Trump at the White House on Monday.
A major component of the investment is a $5.8 billion Hyundai Steel plant in Louisiana, set to produce over 2.7 million metric tons of steel annually while generating more than 1,400 jobs. The facility will supply steel to Hyundai’s automotive plants in Alabama and Georgia, further strengthening the company’s U.S. production network.
Beyond steel, Hyundai is committing $9 billion through 2028 to increase its U.S. vehicle production capacity to 1.2 million units per year. Additionally, the company is allocating $6 billion to expand strategic partnerships in autonomous driving, robotics, artificial intelligence, and advanced air mobility.
Expansion in Georgia and Louisiana
The automaker is also set to celebrate the grand opening of its $7.59 billion car and battery manufacturing facility in Georgia on Wednesday. Hyundai already operates a plant in Alabama, while its affiliate Kia runs a facility in Georgia. Together, these existing plants can produce 700,000 vehicles annually. The new Georgia facility will add another 300,000 units when fully operational.
Louisiana Governor Jeff Landry played a key role in securing the steel plant investment, having met with Hyundai officials during his visit to South Korea in October.
“Money is pouring in. We want to keep it that way,” Trump remarked during the announcement, emphasizing the administration’s focus on attracting foreign investments.
Trade and Tariff Implications
As part of its U.S. commitments, Hyundai also announced plans to purchase $3 billion worth of liquefied natural gas (LNG) produced in the United States.
The investment announcement comes amid heightened trade tensions, as Trump prepares to introduce reciprocal tariffs on several nations, including South Korea, on April 2. The president touted Hyundai’s investment as proof that tariffs are an effective economic strategy, stating, “This investment is a clear demonstration that tariffs very strongly work.”
Trump has already reinstated a 25% tariff on imported steel and aluminum, extending duties to various downstream products. The auto industry, meanwhile, has been lobbying against further tariffs on imported vehicles and parts.
General Motors CEO Mary Barra recently met with Trump, expressing the company’s interest in investing $60 billion in the U.S. while raising concerns over the uncertainty surrounding potential new trade policies.
Hyundai previously announced a $10 billion investment plan in 2022, spanning through 2025. Monday’s declaration reinforces the company’s commitment to expanding its U.S. footprint amid shifting trade dynamics and evolving market demands.