Big headlines this week from Hyundai Motor Group (the Group). The automaker says it is expanding its presence in the U.S. with a $21 billion dollar investment between 2025-2028. Part of its investment includes building a $5.8 billion dollar steel plant in Louisiana.
The investment also includes:
- $9 billion to expand U.S. automobile production to 1.2 million units annually
- $6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging
Hyundai says its investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, 14,000 of those being direct full-time jobs.
“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership. The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.”
Here's a closer look at the breakdown of the $21 billion:
$9 Billion - Expanding automotive production capacity
This will be used to reinforce Hyundai's production capabilities. The automaker wants to produce 1.2 million vehicles annually in the U.S. across all of its brands, those being Hyundai Motor, Kia, and Genesis.
In addition, the Group says it plans to invest in improving its production facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, in order to "further enhance its customer-centric approach in delivering high-quality automobiles."
$6 Billion - Enhancing parts localization and logistics to strengthen supply chain
This is being allocated for the new steel mill in Louisiana so Hyundai can build more of its own parts here, including core parts for electric vehicles (EVs), such as battery packs. This will complement the expansion of its production facilities, and ensure a robust supply chain while at also investing in steel production in the U.S.
Hyundai Steel, the Group’s steel affiliate, will construct an Electric Arc Furnace (EAF) steel mill that is 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.
$6 Billion - Strengthening collaboration in future industries and investing in energy infrastructure
Hyundai says another $6 billion will be invested 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)."
Key initiatives cited by the automaker include:
- Collaborating with Boston Dynamics to expand the U.S. ecosystem for robotics components and establish a mass-production system
- Partnering with NVIDIA to accelerate the development of AI solutions for future mobility, including autonomous driving and robotics
- Advancing R&D with Supernal, the Group’s US affiliate for AAM business, to commercialize an eVTOL vehicle by 2028
- Supplying robotaxis to Waymo as part of its strategic partnership with Hyundai Motor Company, and co-developing autonomous driving services with Aptiv
- Investing potential startups through venture capital and other funding mechanisms to support U.S. startups specializing in mobility, robotics, and AI
The Group will also invest in energy infrastructure projects to secure new business opportunities and contribute to the development of sustainable energy generation, including:
- Strategic cooperation between Hyundai Engineering & Construction Holtec International on Small Modular Reactor (SMR) technology
- Establishing infrastructure to bolster use of renewable energy
- Investing in IONNA EV charging alliance to expand infrastructure
The Group will hold its Hyundai Motor Group Metaplant America Grand Opening celebration in Georgia, later this week. It marks the completion of the largest economic development project in Georgia’s history, just two and a half years after breaking ground. The automaker says it's already allocated roughly $20.5 billion for its U.S. operations since 1986.
Photo Credit: Hyundai Motor Group.