Hyundai Motor announces plans for $21B investment in U.S.

Hyundai Motor (HYMTF) announced plans for an investment of $21B in the United States from 2025 to 2028. “This commitment reflects the Group’s strategic focus on expanding its manufacturing capabilities, advancing future technologies, and enhancing energy infrastructure in America. This latest U.S. investment builds on the Group’s existing allocation of approximately USD 20.5 billion since entering the U.S. market in 1986… To reinforce its production capabilities, the Group will invest a total of USD 9 billion to establish an annual production capacity in the U.S. of 1.2 million vehicles across its automotive brands, Hyundai Motor, Kia, and Genesis. In addition, the Group plans to invest in improving its production facilities, including Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia, to further enhance its customer-centric approach in delivering high-quality automobiles… A total of USD 6 billion will be allocated to increase the localization rate of automotive components – including core parts for electric vehicles, such as battery packs – to form an auto cluster following expansion of the Group’s production facilities, as well as strengthening Group logistics to ensure robust supply chains and investing in steel production in the U.S. Hyundai Steel, the Group’s steel affiliate, will construct an Electric Arc Furnace steel mill in the state of Louisiana, capable of producing 2.7 million tons of steel annually. This facility will produce low-carbon steel sheets using the abundant supply of steel scrap in the U.S. with the aim of enhancing the Group’s agility and flexibility in response to external uncertainties,” the company stated.