Hyundai Motor Group Announces $21 Billion Investment In The US

South Korean automaker, Hyundai Motor Group has announced an investment of $21 billion in the US from 2025 to 2028. The investment focuses on expanding manufacturing capabilities, advancing technologies, and enhancing energy infrastructure in the US market. Additionally, it builds upon the Group’s previous investment of approximately $20.5 billion since entering the US market in 1986.

“Hyundai Motor Group is strengthening its partnership with the United States and reinforcing our shared vision for American industrial leadership. This investment will enable the Group to expand operations in the US and create jobs, contributing to the growth of the American workforce,” said a spokesperson for Hyundai Motor Group.

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The South Korean automaker will invest $9 billion to increase production capacity in the US, aiming to produce 1.2 million vehicles annually across its brands including Hyundai, Kia, and Genesis. The investment includes improvements to production facilities such as Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia.

A total of $6 billion will be dedicated to increasing the localisation of automotive components, including essential electric vehicle (EV) parts such as battery packs. Moreover, the investment will support the creation of an auto cluster around the Hyundai Group's expanded production facilities, improve logistics to ensure supply chains, and invest in steel production within the US. Hyundai Steel, the Group’s steel affiliate, will build an Electric Arc Furnace (EAF) steel mill in Louisiana, capable of producing 2.7 million tons of steel annually. The facility will focus on producing steel using steel scrap available in the US.

Hyundai Motor Group will allocate $6 billion to expand partnerships with companies in the US in the fields of future technologies, including autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM). The Hyundai Group would collaborate with Boston Dynamics to develop the US robotics ecosystem and establish a production system. Additionally, a partnership with NVIDIA is on the cards which would allow the automaker to develop AI solutions for future mobility, such as autonomous driving and robotics. In addition to that, the Hyundai Group would advance R&D efforts through Supernal, the Group’s AAM affiliate, to commercialise an electric vertical takeoff and landing (eVTOL) vehicle by 2028.

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Not only that, but the South Korean automaker also intends to supply robotaxis to Waymo as part of a partnership, along with co-developing autonomous driving services with Aptiv. Finally the Group would invest in US startups specialising in mobility, robotics, and AI through venture capital and other funding mechanisms.

The Group will also invest in energy infrastructure projects to drive energy solutions. This includes partnerships between Hyundai Engineering & Construction and Holtec International on Small Modular Reactor (SMR) technology, the development of renewable energy infrastructure, and investments in the IONNA EV charging alliance to expand EV charging infrastructure.