Hyundai, the South Korean automotive juggernaut, recently announced a shocking $21 billion U.S. expansion. The company is currently, and ambitiously, expanding—it’s building a new steel plant in Louisiana that will cost $5.8 billion. This new plant will feed raw materials to its current manufacturing plants in Alabama and Georgia. The investment is a key component of Hyundai’s strategy to increase its production capacity and technological development in the US.
Once completed, the new steel plant in Louisiana will produce more than 2.7 million metric tons of steel per year. This steel will be used exclusively in Hyundai’s new manufacturing facilities in Alabama and Georgia. Once completed, this one development will create over 1,400 jobs, making a big impact on the local economy. Hyundai's manufacturing plant in Alabama and its affiliate Kia's factory in Georgia will benefit from this domestic steel supply, enhancing their operational efficiency.
Beyond increasing its own steel production, Hyundai expects to boost American partnerships with up to $6 billion in investments. Whether it’s self-driving vehicles, robotics or artificial intelligence, these collaborations are focused on creating the most innovative technologies. By putting an emphasis on innovation, Hyundai hopes to position itself as a leader in the changing world of the automotive industry.
To further solidify its presence in the US market, Hyundai has announced a $9 billion investment to boost vehicle production. The company plans to ramp production up to 1.2 million vehicles per year by 2028. This expansion is another step in Hyundai’s strategy of delivering on the increasing demand for its vehicles in the United States.
Hyundai is taking a notable stand in the depth of its investment. In exchange, they’ll buy $3 billion in liquefied natural gas (LNG) from the US. This is an important step towards supporting our domestic energy sector. It further underscores Hyundai’s commitment to innovation in sustainable and efficient manufacturing processes.
Former President Donald Trump commented on Hyundai’s investment plans:
"This investment is a clear demonstration that tariffs very strongly work." – Donald Trump