Hyundai, the South Korean automotive powerhouse, has announced a substantial $21 billion (£16.3 billion) investment in the United States.
This initiative features a new $5.8 billion steel manufacturing facility in Louisiana.
Additionally, Hyundai plans to enhance its vehicle production in America and will invest several billion dollars in cutting-edge technologies such as autonomous driving and artificial intelligence (AI).
The announcement, made in conjunction with US President Donald Trump, occurs just as his administration is poised to introduce new tariffs on trading partners starting 2 April.
“Investment is flowing in, and we aim to keep it going,” Trump stated at the White House event on Monday.
“This investment clearly shows that tariffs are effective.”
He further indicated that additional tariffs on imported vehicles could be announced later this week.
Hyundai mentioned that the new steel plant is expected to produce over 2.7 million metric tons of steel annually, creating more than 1,400 jobs.
This facility is projected to supply steel for Hyundai’s manufacturing plants located in Alabama and Georgia.
Also included in the announcement are plans to invest $9 billion to elevate the company’s production capacity in the US to 1.2 million vehicles annually by 2028.
Hyundai has additionally allocated $6 billion for expanding collaborations with American companies to foster the development of technologies such as self-driving cars, robotics, and AI.
This Wednesday, Hyundai Motor is scheduled to hold a ribbon-cutting ceremony for a new $7.59 billion automotive and battery manufacturing facility in Georgia.
The company already operates a manufacturing site in Alabama, and its subsidiary, Kia, has a plant in Georgia.
Once fully operational, these three facilities are expected to have the capacity to produce one million vehicles per year, according to the company.
Hyundai has also announced plans to acquire $3 billion in liquefied natural gas (LNG) from the United States.
Since Trump’s re-election, several companies have disclosed plans for significant investments in the U.S.
However, some of these announcements have reiterated previously made commitments.
Under the Biden administration, Hyundai stated it would invest roughly $10 billion in new technology by 2025.
The latest investment announcement comes just days ahead of Trump’s planned implementation of reciprocal tariffs on various countries.
The new import taxes could potentially target Hyundai’s home nation, South Korea, which maintains a significant trade surplus with the United States.
Last month, Trump ordered a 25% tariff on all steel and aluminum imports into the U.S.
He also expanded these levies to encompass numerous metal products, from nuts and bolts to beverage cans.
Recently, U.S. automakers, including General Motors and Ford, have urged the President to exempt imports of cars and automotive parts from the new tariffs.
