South Korea’s Hyundai Motor Group plans to invest $21 billion in the United States over the next three years to expand production, enhance its supply chain, and advance new technologies, the company said. The move comes as Hyundai strengthens its presence in the competitive U.S. electric vehicle (EV) market while ramping up domestic manufacturing capabilities.
The investment will allocate $9 billion toward increasing production capacity across the Hyundai, Kia, and Genesis brands, raising annual output to 1.2 million vehicles. Funds will also go toward upgrading Hyundai’s Alabama manufacturing facility and Kia’s Georgia plant to accommodate growing demand for EVs.
Strengthening U.S. Supply Chain
To support its expanding EV lineup, Hyundai will invest $6 billion to fortify its supply chain, including sourcing critical components such as battery packs. Hyundai Steel will also receive funding to construct a new Electric Arc Furnace steel mill in Louisiana, expected to produce 2.7 million tons of steel for Hyundai’s vehicle lineup, including EVs.
Another $6 billion will be used to advance Hyundai’s research into autonomous driving, artificial intelligence, and robotics. The company has ongoing collaborations with NVIDIA for AI-driven mobility solutions and with Waymo for autonomous robotaxi development.
Major U.S. Expansion Plans
The automaker expects its investments to generate approximately 14,000 new direct full-time jobs by 2028 and over 100,000 direct and indirect jobs across the country. Later this week, Hyundai will hold an opening ceremony for its new EV production facility in Georgia, Hyundai Motor Group Metaplant America. The plant, which will manufacture the refreshed 2025 Ioniq 5 and the upcoming Ioniq 9 three-row electric SUV, is a cornerstone of Hyundai’s U.S. growth strategy.
Hyundai’s announcement comes amid trade tensions, with former U.S. President Donald Trump recently claiming that South Korea imposes significantly higher tariffs on American goods. The South Korean government disputed the claim, citing free trade agreements and an effective tariff rate of just 0.79% on U.S. imports last year.
Hyundai was the fourth-largest EV seller in the U.S. in 2023, with the Ioniq 5 ranking behind Tesla’s Model Y, Model 3, and Ford’s Mustang Mach-E in sales. The updated 2025 Ioniq 5 now offers up to 318 miles of range, a refreshed design, and an NACS port for Tesla Supercharger access.
With production ramping up and the Ioniq 9 set to debut, Hyundai North America CEO Randy Parker expressed confidence that the company’s U.S. momentum will continue.
