Hyundai Motor Group Commits to U.S. Growth with $21B Investment

On March 24, 2025, Hyundai Motor Group (HMG) announced a groundbreaking investment of $21 billion in the United States, set to span from 2025 to 2028. This investment underscores the Group’s strategic focus on boosting its manufacturing capabilities, advancing innovative technologies, and strengthening energy infrastructure in the U.S. This commitment builds on HMG’s previous investment of approximately $20.5 billion since it entered the U.S. market in 1986, reflecting the Group’s long-term vision for growth in the region.

A significant portion of the investment will be directed toward expanding the Group’s production capacity. HMG plans to allocate $9 billion to increase its annual vehicle production to 1.2 million units across its brands—Hyundai, Kia, and Genesis. The Group’s existing manufacturing facilities, including Hyundai Motor Manufacturing in Alabama and Kia’s Autoland in Georgia, will undergo improvements to ensure that they can meet the growing demand for high-quality automobiles. These enhancements are part of a broader effort to strengthen HMG’s customer-centric approach.

In addition to expanding production, HMG is set to invest $6 billion in enhancing the localization of automotive parts, including core components for electric vehicles (EVs) like battery packs. This will help establish a robust auto cluster and improve the Group’s logistics network, ensuring efficient and resilient supply chains. As part of this initiative, Hyundai Steel, a key affiliate of the Group, will construct an Electric Arc Furnace (EAF) steel mill in Louisiana. The mill will produce up to 2.7 million tons of low-carbon steel annually, which will support the Group’s production needs while enhancing its flexibility in a fluctuating global market.

Furthermore, HMG is looking to the future by investing $6 billion in innovation and forging strategic partnerships within the U.S. The Group aims to expand its involvement in emerging industries such as autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM). The Group has already taken significant steps in this direction, collaborating with Boston Dynamics to develop a mass-production system for robotics components, partnering with NVIDIA to advance AI solutions, and working with Supernal to commercialize an electric vertical take-off and landing (eVTOL) vehicle by 2028.

Additionally, HMG is working with Waymo on supplying robotaxis and co-developing autonomous driving services with Aptiv. The Group also intends to invest in U.S. startups focusing on mobility, robotics, and AI, using venture capital and other funding methods to foster innovation.

In parallel with these technological investments, HMG will channel part of its $6 billion into energy infrastructure projects. These include partnerships with Hyundai Engineering & Construction and Holtec International on Small Modular Reactor (SMR) technology, as well as efforts to expand the use of renewable energy. The Group is also investing in the IONNA EV charging alliance to develop a comprehensive EV charging network across the U.S.

By 2028, HMG’s investment is expected to create 14,000 direct full-time jobs, with an overall economic impact that could generate more than 100,000 direct and indirect job opportunities. These efforts are a testament to HMG’s dedication to driving economic growth in the U.S. and contributing to technological and sustainable advancements. The Group’s new facilities and investments, including the Hyundai Motor Group Metaplant America in Georgia, represent a significant milestone, marking the largest economic development project in the state’s history. The grand opening of this facility later this week will highlight the Group’s ongoing commitment to the U.S. market, where it has already created or supported over 570,000 jobs nationwide.