A new plant in Louisiana is the centerpiece of Hyundai’s $21 billion investment over the next three years in the U.S. that President Donald Trump promoted as a result of the effectiveness of his tariff economic policy.
Hyundai officials made the announcement at the White House on March 24 to expand its manufacturing capabilities with Hyundai’s first ever steel mill in U.S., advance future technologies, and enhance energy infrastructure.
“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” said Hyundai Chairman Euisun Chung said in a statement announcing the investment. “The group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. We’re proud to stand with you, and proud to build the future together.”
Georgia Plant
Hyundai is holding an opening ceremony for its new $7.6 billion car and battery factory in Georgia on March 26. The automaker has a factory in Alabama, while its affiliate Kia has a plant in Georgia. The two older plants can produce 700,000 vehicles a year and the new Georgia plant will have a 300,000-vehicle production capacity when fully operational.
Chung noted the decision to open the plant in the started in 2019 in meeting with President Trump in Seoul that now “coincides with the beginning of President Trump’s second term, making this moment even more special.”
Expanding Production
Hyundai Steel electric arc furnace (EAF) steel mill in Louisiana will be capable of producing 2.7 million tons of steel annually when it gets up and running. This facility will produce low-carbon steel sheets using steel scrap from across the U.S.
The investment dedicates $9 billion to establish an annual production capacity in the U.S. of 1.2 million vehicles across its automotive brands, Hyundai Motor, Kia, and Genesis. In addition, upgardes at Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia production facilities are planned. An additional $6 billion will be allocated to increase the localization rate of automotive components—including core parts for electric vehicles (EVs), such as battery packs—to form an auto cluster following expansion of the production facilities to ensure supply chains.
Finally, $6 billion is being earmarked for strategic partnerships with U.S. companies in areas including autonomous driving, robotics, artificial intelligence (AI), advanced air mobility (AAM), energy infrastructure projects to secure new business opportunities and contribute to the development of sustainable energy generation.
Trump Touts Tariffs
Hyundai officials estimated 14,000 new direct full-time jobs will be created by 2028. The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries.
The White House press office noted the proposed investments by Hyundai is “further proof that President Trump’s economic agenda is working…leveraging tariffs to remake the U.S. into a global manufacturing powerhouse.” Among the other developments cited by were:
- Stellantis announced a $5 billion investment in its U.S. manufacturing network — including re-opening an Illinois manufacturing plant — as it pledges to increase domestic vehicle production;
- Honda is expected to produce its next-generation Civic hybrid model in Indiana;
- Nissan is considering moving production from Mexico to the U.S.; and
- Volvo is considering expanding its U.S.-based output.
“This investment is a clear demonstration that tariffs very strongly work,” Trump said at the White House ceremony “Money is pouring in. We want to keep it that way.”
