Hyundai Motor Group Commits to U.S. Growth with USD 21 Billion Investment

Rhea-AI Summary

Hyundai Motor Group has announced a massive USD 21 billion investment in the United States from 2025 to 2028. The investment will be allocated across three main areas:

• USD 9 billion for expanding U.S. automobile production capacity to 1.2 million units annually across Hyundai, Kia, and Genesis brands

• USD 6 billion for enhancing parts localization, logistics, and establishing a new steel mill in Louisiana capable of producing 2.7 million tons of steel annually

• USD 6 billion for future industries development, including partnerships in autonomous driving, robotics, AI, and advanced air mobility with companies like Boston Dynamics, NVIDIA, and Waymo

The investment is projected to create 14,000 direct full-time jobs and generate over 100,000 direct and indirect job opportunities by 2028. This commitment builds upon the Group's existing USD 20.5 billion investment since entering the U.S. market in 1986.

Positive

• USD 21 billion new investment commitment demonstrates strong market expansion
• Production capacity increase to 1.2 million vehicles annually strengthens US market presence
• New steel mill establishment ensures supply chain control and reduces external dependencies
• Strategic partnerships with tech leaders in AI, robotics, and autonomous driving
• Significant job creation with 14,000 direct full-time positions

Negative

• Large capital expenditure may impact short-term financial flexibility
• Increased exposure to US market fluctuations and regulatory changes
• Significant execution risk across multiple simultaneous large-scale projects

• The Group to invest a total of USD 21 billion in the U.S. from 2025 to 2028
• USD 9 billion to expand U.S. automobile production to 1.2 million units annually
• USD 6 billion to enhance parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains
• USD 6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging
• Investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs

SEOUL, South Korea, March 24, 2025 /PRNewswire/ -- Hyundai Motor Group (the Group) is announcing a significant investment of USD 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 U.S. investment builds on the Group's existing allocation of approximately USD 20.5 billion since entering the U.S. market in 1986.

"Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership. The Group's investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We're proud to stand with you, and proud to build the future together."

Expanding automotive production capacity

To reinforce its production capabilities, the Group will invest a total of USD 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, 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.

Enhancing parts localization and logistics to strengthen supply chain

A total of USD 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 Group's production facilities, as well as strengthening Group logistics to ensure robust supply chains and investing in steel production in the U.S.

Hyundai Steel, the Group's steel affiliate, will construct an Electric Arc Furnace (EAF) steel mill in the state of 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 U.S. with the aim of enhancing the Group's agility and flexibility in response to external uncertainties.

Strengthening collaboration in future industries and investing in energy infrastructure

The Group will invest USD 6 billion to drive innovation and expand strategic partnerships with U.S. companies in areas including autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM).

Key initiatives include:

• Collaborating with Boston Dynamics to expand the U.S. 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 USD 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 U.S. by 2028. The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries.

The Group plans to hold its Hyundai Motor Group Metaplant America Grand Opening celebration in Georgia, U.S., later this week, marking the completion of the largest economic development project in Georgia's history, just two and a half years after breaking ground.

HMGMA exemplifies HMG's dedication to driving economic growth, furthering technological advancements, and delivering sustainable solutions to the U.S. market, creating or supporting over 570,000 jobs nationwide.

About Hyundai Motor Group
Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group's mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication and the will to take on any challenges, we strive to create a better future for all. More information about Hyundai Motor Group can be found at:
http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Media Center (kianewscenter.com), Genesis Media Center.

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SOURCE Hyundai Motor Group

FAQ

How much is Hyundai Motor Group (HYMTF) investing in the US from 2025 to 2028?

Hyundai Motor Group is investing USD 21 billion in the United States from 2025 to 2028, distributed across automotive production, parts localization, and future technologies.

How many jobs will Hyundai's USD 21 billion investment create by 2028?

The investment will create 14,000 direct full-time jobs and generate over 100,000 direct and indirect job opportunities across related industries by 2028.

What is Hyundai's planned vehicle production capacity in the US after the investment?

Hyundai plans to establish an annual production capacity of 1.2 million vehicles across its Hyundai, Kia, and Genesis brands in the US.

What major partnerships is HYMTF pursuing with its future industries investment?

Hyundai is partnering with Boston Dynamics for robotics, NVIDIA for AI and autonomous driving, Waymo for robotaxis, and Aptiv for autonomous driving services.

What is Hyundai Steel's planned production capacity in Louisiana?

Hyundai Steel will construct an Electric Arc Furnace steel mill in Louisiana with an annual production capacity of 2.7 million tons of low-carbon steel.