Hyundai Motor Group announced a significant investment of $21 billion in the United States from 2025 to 2028.
This commitment reflects the Group’s strategic focus on expanding its manufacturing capabilities, advancing future technologies, and enhancing energy infrastructure in America. This latest investment builds on the Group’s allocation of approximately $20.5 billion since entering the US market in 1986.
A total of $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 the expansion of the Group’s production facilities. The group will also strengthen Its logistics to ensure robust supply chains and invest in steel production in the US.
To reinforce its production capabilities, the Group will also invest $9 billion to establish an annual production capacity in the US of 1.2 million vehicles across its automotive brands, Hyundai Motor, Kia, and Genesis.
Additionally, the Group plans to invest in improving its production facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, to further enhance its customer-centric approach in delivering high-quality automobiles.
Hyundai Steel, the Group’s steel affiliate, will construct an Electric Arc Furnace (EAF) steel mill in Louisiana, capable of producing 2.7 million tons of steel annually. This facility will produce low-carbon steel sheets using the abundant supply of steel scrap in the country, aiming to enhance the Group’s agility and flexibility in response to external uncertainties.
Key initiatives include:
- Collaborating with Boston Dynamics to expand the US ecosystem for robotics components and establish a mass-production system
- Partnering with NVIDIA to accelerate the development of AI solutions for future mobility, including autonomous driving and robotics
- Advancing R&D with Supernal, the Group’s US affiliate for AAM business, to commercialize an eVTOL vehicle by 2028
- Supplying robotaxis to Waymo as part of its strategic partnership with Hyundai Motor Company, and co-developing autonomous driving services with Aptiv
- Investing potential startups through venture capital and other funding mechanisms to support U.S. startups specializing in mobility, robotics, and AI
As part of its $6 billion commitment, the Group will also invest in energy infrastructure projects to secure new business opportunities and contribute to the development of sustainable energy generation, including:
- Strategic cooperation between Hyundai Engineering & Construction Holtec International on Small Modular Reactor (SMR) technology
- Establishing infrastructure to bolster use of renewable energy
- Investing in IONNA EV charging alliance to expand infrastructure
Through these investments, the Group anticipates it will create 14,000 new direct full-time jobs in the America by 2028. The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries.
Filed Under: Technology News