SEOUL (ANN/THE KOREA HERALD) – Hyundai Motor Group has pledged USD21 billion in new investments in the United States over the next three years — its largest-ever commitment there — as the Korean auto conglomerate seeks to navigate the Trump administration’s intensified tariff policies.
“A key part of this commitment is our USD6 billion investment to strengthen the US supply chain, from steel and parts to automobiles,” Hyundai Motor Group Executive Chair Chung Euisun said after being introduced to the podium by US President Donald Trump at the White House on Monday.
“We are especially excited about Hyundai Steel’s multibillion investment in a new facility in Louisiana, which will create 1,300 American jobs and serve as the foundation for a more self-reliant and secure automotive supply chain in the US.”
Trump touted the announcement, highlighting that it will be “Hyundai’s first-ever steel mill in the United States … supplying steel for its auto parts and auto plants to Alabama and Georgia, which will soon produce more than 1 million American-made cars every single year.”
Hyundai Motor and its sister affiliate Kia have been running a plant in Alabama and Georgia, respectively. The Korean automaker is set to officially open the Hyundai Motor Group Manufacturing America, a USD7.6 auto plant in Georgia, on Wednesday.
Chung also unveiled that Hyundai Motor Group will purchase USD3 billion worth of US liquefied natural gas to support America’s energy industry and enhance the conglomerate’s energy security.
“This investment is a clear demonstration that tariffs very strongly work,” said Trump.
“Hyundai will be producing steel in America and making its cars in America. As a result, they will not have to pay any tariffs.”
However, it remains unclear whether Trump was referring to Hyundai’s production in the US or its imported products for the tariff exemption.
Hyundai’s investment announcement came as Hyundai Motor has been bracing for the impact of the Trump administration’s tariffs, to be announced on April 2, on its US businesses.
Chung invited Trump to visit one of Hyundai Motor Group’s manufacturing facilities in the US and see the Korean company’s commitment to the US and its workers during his remarks but Trump did not respond to the invitation immediately.
According to Hyundai Motor, of the announced USD21 billion investment, USD8.6 billion will go toward the expansion of HMGMA to increase its annual production capacity to 500,000 units from the current 300,000 units, and toward modernizing equipment at the automakers’ existing plants in the US.
As for Hyundai Steel’s new site in Louisiana, USD6.1 billion has been allocated to build a steel plant using the electric arc furnace production with a 2.7 million-metric-ton annual output capacity.
The other USD6.3 billion will be spent on expanding US partnerships in autonomous driving, robotics, artificial intelligence and advanced air mobility technologies, and accelerating the commercialisation of Hyundai Motor Group’s relevant US units such as Boston Dynamics, Supernal and Motional.
The Korean conglomerate announced that Hyundai Engineering will join forces with US’ Holtec International to push for the construction of small modular reactors in Michigan at the end of this year.
According to Hyundai Motor Group, it has invested over USD20 billion since entering the US in 1986 and now supports more than 570,000 jobs there.
Earlier this year, the auto giant announced that it would invest KRW24.3 trillion (USD16.6 billion) in Korea this year, its largest-ever domestic injection, to bolster its future competitiveness.
