Michelle ThompsonHyundai, the South Korean automaker, has revealed plans to invest $21 billion (£16.3 billion) in the US, just days before President Donald Trump is expected to impose new tariffs on trading partners.
The investment includes a new $5.8 billion steel plant in Louisiana. Hyundai also intends to expand its vehicle production in the US and invest billions in new technologies, including autonomous driving and artificial intelligence (AI).
Trump praised the move, stating, “This investment is a clear demonstration that tariffs very strongly work.” He further indicated that additional tariffs on vehicle imports may be announced soon.
The new steel plant is expected to produce over 2.7 million metric tons of steel annually and create more than 1,400 jobs. The steel will be used at Hyundai’s manufacturing plants in Alabama and Georgia.
Hyundai also plans to invest $9 billion to increase its production capacity in the US to 1.2 million vehicles annually by 2028. Additionally, the company has allocated $6 billion to expand its partnerships with US firms to develop technologies like self-driving cars, robotics, and AI.
On Wednesday, Hyundai Motor is scheduled to open a new $7.59 billion car and battery factory in Georgia. With existing plants in Alabama and Georgia, the three facilities are expected to produce a million vehicles annually when fully operational.
Hyundai also intends to purchase $3 billion worth of liquefied natural gas (LNG) from the US.
Several companies have announced major investments in the US since Trump returned to office, though some are reiterating previously disclosed plans. Under the Biden administration, Hyundai had already committed to investing $10 billion in new technologies by 2025.
The timing of the announcement is significant, as Trump has stated that he will impose reciprocal tariffs on April 2, which could affect South Korea, Hyundai’s home country, due to its trade surplus with the US. Last month, Trump imposed a 25% import tax on all steel and aluminum entering the US, extending the tariffs to a wide range of metal products.
In recent weeks, US automakers such as General Motors and Ford have urged Trump to exempt vehicle imports and parts from the new tariffs.
