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Hyundai's Historic $21 Billion Investment in US: A Game Changer for the Auto Industry

3/25/2025
Hyundai is set to invest a staggering $21 billion in the US, creating thousands of jobs and expanding its production capacity. This move is a direct response to looming tariffs from Donald Trump. Discover the full details!
Hyundai's Historic $21 Billion Investment in US: A Game Changer for the Auto Industry
Hyundai announces a record $21 billion investment in the US, creating thousands of jobs and expanding production capacity amid tariff threats from Trump.

Hyundai's Historic $21 Billion Investment in the US

In a significant move to strengthen its presence in the United States, South Korea’s Hyundai has announced a record-breaking investment of $21 billion (£16 billion). This ambitious plan aims to bolster the company’s defenses against potential tariffs imposed by former President Donald Trump. The investment strategy includes a multifaceted approach to enhance production capacity and foster technological advancements in partnership with American firms.

Investment Breakdown: Jobs and Production Capacity

Hyundai's investment will see $9 billion allocated by 2028 to create approximately 14,000 full-time jobs across the US. This initiative is designed to increase the company’s production capacity to an impressive 1.2 million vehicles annually. Furthermore, an additional $6 billion will be dedicated to establishing strategic partnerships with American companies in cutting-edge fields such as autonomous driving, robotics, artificial intelligence, and advanced air mobility.

New Manufacturing Facilities and Job Creation

As part of this extensive investment, Hyundai will also launch a new $5.8 billion steel plant in Louisiana. This facility is projected to produce over 2.7 million metric tonnes of steel each year, generating more than 1,400 jobs. The steel produced will primarily supply Hyundai's auto manufacturing plants located in Alabama and Georgia.

Moreover, Hyundai is set to hold an opening ceremony for its new $7.59 billion car and battery factory in Georgia. This state-of-the-art facility will complement Hyundai’s existing operations, including a factory in Alabama and an affiliate Kia’s plant in Georgia. The combined production capacity of these older plants reaches 700,000 vehicles annually, while the new Georgia plant is expected to add 300,000 vehicles to that total when fully operational.

Trump's Tariff Policies and Industry Response

Former President Trump expressed his enthusiasm for Hyundai's investment, stating, “We’re delighted to report that Hyundai is announcing a major $5.8 billion investment in American manufacturing. Money is pouring in, and we want to keep it that way.” This investment announcement coincides with Trump’s threats to impose reciprocal tariffs on various countries, including South Korea, which maintains a significant trade surplus with the US.

Trump emphasized that this investment reflects the effectiveness of tariffs, stating, “This investment is a clear demonstration that tariffs very strongly work.” He also hinted at the possibility of new tariffs on automobiles being announced shortly. Previously, Trump had reinstated global tariffs of 25% on all imports of steel and aluminum, extending these duties to numerous downstream products.

In light of these developments, carmakers have been actively lobbying the White House to prevent the implementation of substantial new tariffs on imported vehicles and parts. Notably, General Motors CEO Mary Barra recently met with Trump, highlighting the company’s intention to invest $60 billion in the US while expressing concerns over the uncertainty surrounding tariff policies.

Hyundai's Commitment to American Energy

In addition to its manufacturing plans, Hyundai has committed to purchasing $3 billion worth of liquefied natural gas produced in the United States. This move aligns with the company's broader strategy to invest in American industries and strengthen its supply chain.

As the automotive landscape continues to evolve, Hyundai's substantial investment underscores its commitment to the US market. The company’s plans, which were initially hinted at in 2022 with a proposed $10 billion investment by 2025, are now coming to fruition, marking a significant milestone in the ongoing relationship between South Korea and the United States.

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