The South Korean auto giant has no plans to slow down in the US. To drive growth in the US, Hyundai will invest $21 billion over the next three years. The funds will help expand production, partnerships, and EV charging infrastructure in the US. Some of the investment will also be used for a new plant to produce steel for its upcoming EVs.
Hyundai announces $21 billion investment in the US
Hyundai is coming off its best sales year ever in the US, selling over 836,800 vehicles, 4% more than it did in 2023. February was its fifth straight record sales month in the US.
Over the next three years, the South Korean auto giant plans to invest $21 billion in the US. Hyundai will use $9 billion to increase US production capacity between the Hyundai, Kia, and Genesis brands to 1.2 million.
Some of the funds will be used to upgrade its current manufacturing plant in Alabama and Kia’s Georgia facility. Another $6 billion will be used to expand its supply chain, including EV parts like battery packs.
Meanwhile, Hyundai Steel will use some of it to build a new Electric Arc Furnace steel mill in Louisiana. The facility will be able to produce 2.7 million tons of steel for Hyundai vehicles, including EVs.
Hyundai will use the other $6 billion to advance new tech and expand partnerships in autonomous driving, robotics, AI, and advanced air mobility. Some of its projects include partnering with NVIDIA to accelerate autonomous driving and AI for mobility and supplying robotaxis to Waymo.
By 2028, Hyundai’s investments will create around 14,000 new direct full-time jobs. Overall, it will generate over 100,000 direct and indirect jobs in the US.
Later this week, Hyundai will hold an opening ceremony at its massive new EV plant in Georgia, Hyundai Motor Group Metaplant America, where the 2025 IONIQ 5 is being built. Soon, it will be joined by Hyundai’s first three-row electric SUV, IONIQ 9.
The investment comes after Trump targeted South Korea earlier this month, claiming its tariffs were four times higher than those of the US. The South Korean government shot back, saying the two countries had free trade, and the effective tariff rate on US imports was 0.79% last year.
The new investment comes ahead of Trump’s April 2 tariff deadline. Hyundai is already one of the top EV sellers in the US. The IONIQ 5 was the fourth top-selling EV in the US last year behind the Tesla Model Y, Model 3, and Ford’s Mustang Mach-E.
After a major refresh, the 2025 IONIQ 5 now has more range (up to 318 miles), improved style inside and out, and an NACS port for charging at Tesla Superchargers.
With its first three-row electric SUV, the IONIQ 9, arriving and production ramping up at its new EV plant in Georgia, Hyundai North America CEO Randy Parker said in January that he’s “confident this momentum will continue” over the next few years. The new investment will only charge up Hyundai’s ambitions in the US.
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