Hyundai Motor Group announces $21bn US investment plan

Hyundai Motor Group has committed to a $21bn investment in the US from 2025 to 2028, with an aim to expand its production capabilities, advance future technologies, and bolster energy infrastructure.

The investment announcement for the US follows the Trump administration’s more protectionist stance in the area of international trade policy. Additional US import tariffs imposed recently are designed to encourage more investment in US manufacturing capacity and reduce US imports.

The Hyundai investment builds upon the company’s previous commitment of around $20.5bn since its entrance into the US market in 1986.

As part of its new commitment, the South Korean automaker aims to invest $9bn in expanding its US annual production capacity to 1.2 million vehicles across its brands, including Hyundai Motor, Kia, and Genesis.

This will reinforce production capabilities and improve existing facilities such as Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia.

Also, a $6bn investment will support the localisation of automotive components, including electric vehicle (EV) battery packs, the development of an auto cluster, enhanced logistics, and US steel production.

The company’s manufacturing affiliate Hyundai Steel plans to construct an electric arc furnace steel mill in Louisiana, with a 2.7 million tonnes annual production capacity, focusing on low-carbon steel sheets.

Hyundai Motor Group will also invest another $6bn to drive innovation and strengthen partnerships with the US companies in key areas such as autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM).

As part of this initiative, the company will collaborate with Boston Dynamics to expand the US robotics ecosystem and establish a mass-production system.

It will also partner with NVIDIA to accelerate AI development for future mobility, including autonomous driving and robotics.

In the AAM sector, the company will advance R&D efforts with its US affiliate, Supernal, aiming to commercialise an eVTOL vehicle by 2028.

Additionally, it will supply robotaxis to Waymo through its partnership with Hyundai Motor Company and co-develop autonomous driving services with Aptiv.

The group will also invest in startups through venture capital and other funding mechanisms, supporting US companies specialising in mobility, robotics, and AI.

The investment is expected to generate 14,000 direct full-time jobs and over 100,000 direct and indirect jobs in the US by 2028.

Also, Hyundai Motor Group is preparing to re-enter the Russian market amid ongoing US-sponsored ceasefire negotiations between Russia and Ukraine, anticipating a potential easing of sanctions.

“Hyundai Motor Group announces $21bn US investment plan” was originally created and published by Just Autoa GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.