Chairman Chung Eui-sun fired a big shot at the White House..Hyundai Motor Group invests $21 billion in U.S. over four years
Mar 25, 2025
|
Hyundai Motor Group announced on the 24th (local time) that it will invest $21 billion in major areas such as automobiles, parts and logistics, steel, and future industries in the United States from this year to 2028.
Hyundai Motor Group will expand its production capacity of Hyundai Motor Group's Metaplant America (HMGMA) from 300,000 units to 500,000 units in the future, while promoting the construction of an electricity-powered integrated steel mill in Louisiana. It plans to expand cooperation with U.S. companies in future industries such as robotics and AI, and also implement energy-related infrastructure investments.
The United States is Hyundai Motor Group's largest foreign investment and business country, and it has the world's best technology in the future.
With this investment, Hyundai Motor Group plans to respond to the U.S. administration's policies, including rebuilding the U.S. manufacturing industry, and expand business opportunities in various fields to strengthen its status as a top tier company in the U.S.
First of all, the plan is to strengthen future business competitiveness, including mobility, and strengthen corporate trust by expanding its business base in the U.S. and establish itself firmly as a sustainable company.
At the same time, Hyundai Motor Group's investment is expected to promote economic revitalization between Korea and the United States, and further expand economic cooperation between the two countries.
It is also expected to create new added value as well as the growth of domestic related industries. Until now, Hyundai Motor Group's overseas investment has formed a virtuous cycle that has improved the value of local brands abroad and increased global demand, resulting in the growth of the domestic automobile and parts industries.
In addition, Hyundai Motor Group is making an annual investment of 24.3 trillion won in Korea, the largest ever this year.
■ Invest in establishing a system of 1.2 million units produced locally in the U.S., establishing an electric furnace steel mill, and strengthening future industrial capabilities
Hyundai Motor Group specifically invests in the ▲ automobile ▲ parts, logistics, and steel ▲ future industry and energy sectors.
▲In the automobile sector, Hyundai Motor Group will invest a total of $8.6 billion to establish a system of 1.2 million units produced locally in the United States.
Hyundai Motor Group has a production capacity of 1 million units in the United States, completing Hyundai Motor's Alabama plant (360,000 units), Kia Georgia plant (340,000 units) in 2010, and HMGMA (300,000 units) this year.
Hyundai Motor Group will first expand its production capacity to 500,000 units through the expansion of 200,000 HMGMA units. In addition, existing factories such as the Alabama plant and the Georgia plant will also make supplementary investments such as modernization and efficiency of production facilities so that they can continue to produce high-quality new cars. Through this, the goal is to clearly lay the foundation for the production system of 1.2 million units in the future.
▲ In the parts, logistics, and steel sectors, parts, logistics, and steel group companies that have entered together with Hyundai Motor and Kia will execute a total of $6.1 billion to strengthen the supply chain between finished vehicles and parts companies.
In line with the expansion of HMGMA production capacity, we will increase the localization rate of parts and promote local procurement of core parts of electric vehicles such as battery packs.
In addition, it will build a 2.7 million-ton electric steel mill in the U.S. state of Louisiana. It is a steel mill specializing in low-carbon automobile steel sheets, and it increases its ability to respond to uncertain external risks such as tariffs by localizing the supply of high-quality automobile steel sheets. It is also expected to generate stable profits based on solid steel demand to secure new growth engines in the steel sector.
▲ $6.3 billion will be executed in the future industry and energy sector. Boston, Hyundai Motor Group's U.S.-based subsidiary, expanded cooperation with leading U.S. companies related to future new technologies such as autonomous driving, robots, AI, and AAMIt speeds up the commercialization of Boston Dynamics, Supernal, and Mural.
Hyundai Motor Group is expanding mutual collaboration by forming strategic partnerships with leading innovative companies in the United States. Nvidia is working on various projects to intelligentize core mobility solutions such as SDV (software-oriented vehicle) and robotics and strengthen the application of AI technology throughout its business operations, and Waymo, a U.S. self-driving company, is working together to expand self-driving taxi services (Waymo One) by utilizing HMGMA production Ioniq 5.
Boston Dynamics and 'Robotics and AI Lab (RAI)' will strengthen their capabilities to develop intelligent robots based on reinforcement learning, and Supernull will promote unmanned aerial vehicle testing collaborations with various states in the United States with the aim of commercializing AAM aircraft in 2028. Moral, a subsidiary of U.S. self-driving, is also upgrading self-driving technology at level 4 or higher using self-driving data collection and AI model learning.
In addition, promising startups related to future technologies are discovered and preemptive investments are made. Along with investment in the nuclear and renewable energy sectors, it will also contribute to the expansion of charging stations for electric vehicles.
Hyundai Engineering & Construction, in partnership with Holtec International in the United States, will begin construction of SMR (small nuclear power plant module) in Michigan at the end of this year. Hyundai Engineering acquired the right to operate a solar power plant in Texas last year and is stepping up preparations for commercial operation in the first half of 2027. It also plans to expand the installation of charging stations through IONA, an association of high-speed electric vehicle charging services with automakers in the United States.
■ Hyundai Motor Group will execute a record investment of KRW 24.3 trillion in Korea in 2025
Hyundai Motor Group is also expanding its domestic investment. Earlier this year, Hyundai Motor Group announced that it will invest a record 24.3 trillion won this year to strengthen its future competitiveness, centering on mobility innovation hub Korea. This is an increase of more than 19% compared to KRW 20.4 trillion in 2024.
In detail, ▲ R&D investment of 11.5 trillion won, ▲ ordinary investment of 12 trillion won, ▲ strategic investment of 800 billion won, respectively. R&D investment is used to secure core future capabilities such as improving product competitiveness, electrification, SDV, hydrogen product and source technology development.
Current investment is invested in EV conversion, expansion of production facilities for new vehicles, innovation in manufacturing technology, and supplementation of infrastructure such as customer experience bases. Strategic investments are planned to be implemented to enhance the competitiveness of core future businesses such as autonomous driving, software, and AI.
Especially large-scale investments are made in the construction of EV-only factories. In the second half of this year, Kia Hwaseong EVO Plant will be completed and PBV electric vehicles customized for customers will be produced in earnest. Hyundai Motor's Ulsan EV plant, which is under construction with the goal of operating in the first half of 2026, plans to mass-produce various models starting with the ultra-large SUV electric vehicle model.
The Hyundai Motor Group's large-scale investment in Korea and the United States is determined to strengthen future competitiveness through active challenges, constant changes, and innovation without being daunted by uncertain business conditions at home and abroad, while creating new possibilities for humanity, a Hyundai Motor Group official said. "We will create future opportunities through bold investment, internalization of core technologies, and strategic cooperation with top tier companies at home and abroad."
This article was translated by Naver AI translator.
