Hyundai Motor Group announced on Monday that it will invest $21 billion in the United States by 2028. During an event held at the White House’s Roosevelt Room and presided over by U.S. President Donald Trump, Hyundai Motor Group Chairman Chung Eui Sun stated that the investment will span approximately four years, with $8.6 billion allocated to automobile production, $6.1 billion to parts, logistics, and steel, and $6.3 billion to future industries and energy.
According to Hyundai Motor, in the automotive production sector, the company plans to expand the production capacity of its Hyundai Motor Group Metaplant America (HMGMA) in Georgia—which officially opens Wednesday—by an additional 200,000 units. With this expansion, Hyundai aims to secure an annual production capacity of over 1.2 million vehicles in the United States. The company currently produces about 360,000 vehicles annually at its Alabama plant and 340,000 at Kia’s West Point, Georgia plant. The newly operational HMGMA will initially produce 300,000 units annually, with plans to scale up to 500,000.
In the parts, logistics, and steel sector, Hyundai will construct an electric arc furnace steel plant in Louisiana with an annual capacity of 2.7 million tons. This plant will specialize in low-carbon automotive steel sheets and supply materials for vehicles manufactured at Hyundai’s U.S. facilities.
The $6.3 billion investment in future industries and energy will focus on expanding cooperation with leading U.S. companies in emerging technologies such as autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM). The company also plans to accelerate commercialization efforts for its U.S.-based affiliates, such as Boston Dynamics and Supernal.
Alongside investments in nuclear and renewable energy, Hyundai aims to speed up the expansion of electric vehicle (EV) charging infrastructure. Hyundai Engineering & Construction, in partnership with U.S.-based Holtec International, plans to begin construction of a small modular nuclear reactor (SMR) in Michigan by the end of this year.
This new investment plan marks a South Korean company’s first large-scale U.S. investment announcement during the second Trump administration. Given Trump’s recent warnings that he may introduce reciprocal tariffs, including measures targeting non-tariff barriers, by April 2, some view Hyundai’s move as a proactive countermeasure by Korean companies.
Trump welcomed the announcement, immediately referring to it as the effect of tariffs. Speaking before Chairman Chung took the podium, Trump stated that Hyundai would produce steel and cars in the United States and, as a result, would not need to pay tariffs.