South Korean automaker Hyundai has announced a massive $21 billion investment plan in the United States. The company aims to expand its U.S. presence by increasing vehicle production, investing in artificial intelligence (AI), and opening a new steel plant.
The announcement comes just before President Donald Trump’s administration begins imposing tariffs on foreign trade partners on April 2. Trump welcomed Hyundai’s decision, stating that it proves tariffs help the economy. He also hinted that new tariffs on imported vehicles could be announced soon.
Hyundai to Build a $5.8 Billion Steel Plant in Louisiana
Hyundai confirmed that it will construct a $5.8 billion steel plant in Louisiana. The facility will support Hyundai’s factories in Georgia and Alabama by producing over 2.7 million metric tons of steel annually.
The plant is expected to create more than 1,400 new jobs, further strengthening the company’s presence in the southern United States. Hyundai has been expanding its U.S. production in recent years, and this latest move aligns with its long-term growth plans.
Expansion of Vehicle Manufacturing in the U.S.
Hyundai plans to increase its vehicle output in the United States to 1.2 million units per year by 2028. To achieve this, the company is investing $9 billion to upgrade and expand its existing production facilities.
Additionally, Hyundai will hold an official opening ceremony on Wednesday for its new $7.59 billion car and battery manufacturing plant in Georgia. The company already operates a vehicle assembly plant in Alabama, while its affiliate Kia runs another factory in Georgia.
Once all three facilities are fully operational, Hyundai’s U.S. production capacity will exceed one million vehicles annually.
$6 Billion Investment in AI, Automation, and Robotics
Hyundai has also set aside $6 billion for research and partnerships focused on AI, autonomous vehicles, and automation technologies. The company aims to position itself as a leader in next-generation automotive technology.
In recent years, Hyundai has been actively exploring AI-driven manufacturing processes and self-driving technology. The investment reflects its commitment to future innovation in the auto industry.
Hyundai to Buy $3 Billion in U.S. Liquefied Natural Gas (LNG)
In addition to manufacturing expansion, Hyundai announced a $3 billion investment in U.S. liquefied natural gas (LNG). The company will purchase LNG directly from American suppliers, further strengthening its economic ties with the United States.
The deal is expected to provide Hyundai with a stable energy supply for its operations while also supporting the U.S. energy sector.
Trump’s Tariffs and Hyundai’s Strategic Timing
Hyundai’s investment announcement comes just days before Trump’s new trade policies take effect. The administration has already imposed a 25% tariff on steel and aluminum imports. These tariffs cover hundreds of metal products, including bolts, pipes, and beverage cans.
There is growing concern that Trump may soon extend tariffs to include imported vehicles and auto parts. Automakers like Ford and General Motors (GM) have urged the administration to exempt the auto industry from these measures.
If new tariffs target auto imports, it could significantly impact South Korea, which maintains a trade surplus with the U.S. The country is a major exporter of vehicles and auto parts to the American market.
Hyundai Reaffirms Its Long-Term Investment Commitment
Hyundai has consistently demonstrated a long-term commitment to investing in the U.S. automotive sector. In 2022, the company pledged $10 billion to develop new technologies by 2025 under President Joe Biden’s administration.
While some recent investment announcements appear to restate earlier commitments, Hyundai insists that its latest move reflects new strategic goals in response to changing market conditions and technological advancements.
Economic Impact and Market Reactions
Hyundai’s expansion is expected to provide economic benefits, including job creation and increased production capacity. Analysts predict that the new investments will further strengthen the company’s competitiveness in the North American market.
Meanwhile, Trump continues to emphasize that his tariff policies are designed to protect American jobs and industries. Whether these trade measures will lead to broader economic benefits or provoke trade tensions remains to be seen.
Hyundai’s strategic expansion ahead of the new tariffs highlights the company’s adaptability and long-term vision. As the global auto industry undergoes major shifts, Hyundai aims to maintain its strong position in the U.S. market.