Chung Eui-sun, chairman of Hyundai Motor Group, met with U.S. President Donald Trump and promised a large-scale investment of about 31 trillion won in the United States. The investment includes the construction of a new steel mill in the U.S., as well as increasing production facilities at existing plants and expanding investment in future technologies such as robots and artificial intelligence.
◇ Trump praises investment of 31 trillion won, saying ‘Hyundai is a great corporation’
On the 24th (local time), Chairman Chung announced that he would invest $21 billion (about 31 trillion won) in major sectors such as automobiles, parts, logistics, steel, and future industries in the U.S. over the next four years through 2028. This is the largest investment Hyundai has made since entering the U.S. market in 1986.
Chung said, “The core of this promise is to invest $6 billion (about 9 trillion won) to strengthen the supply chain in the U.S. from steel and parts to automobiles,” adding, “I am particularly excited about Hyundai Steel creating 1,300 jobs in Louisiana with the construction of a steel mill.”
He emphasized, “In 2019, I met with President Trump in Seoul and promised to invest in Georgia to create over 8,500 jobs,” noting that “this moment, marking the completion of this innovative project, has become even more special as it coincides with the start of President Trump’s second term.”
In response, President Trump praised, “Hyundai is a great corporation,” and said, “If there are any issues regarding permits and licenses, come to me.”
◇ Construction of a steel mill in Louisiana… Local production in the U.S. to reach 1.2 million vehicles
Hyundai Motor Group will specifically execute investments in the following sectors: ▲ automobiles ▲ parts, logistics, and steel ▲ Mirae Industries and energy.
In the automobile sector, a total of $8.6 billion (about 13 trillion won) will be invested to build a production capacity of 1.2 million vehicles in the U.S. Hyundai Motor Group has already completed the Alabama plant (360,000 units) and the Georgia plant (340,000 units), and this year is expected to complete the green car dedicated plant, MetaPlant America (300,000 units), increasing its current production capacity to 1 million units.
Hyundai Motor Group will expand the production capacity of the MetaPlant to a total of 500,000 units. The group also plans to invest in modernization and efficiency improvements of existing plants such as those in Alabama and Georgia to ensure continued production of high-quality new vehicles.
In the parts, logistics, and steel sector, corporations that have entered the market alongside Hyundai and Kia will execute a total of $6.1 billion (about 9 trillion won) to enhance the supply chain between finished vehicles and parts manufacturers. They will increase facilities to match the expanded production at the MetaPlant, boost local sourcing rates for parts, and promote local procurement of key electric vehicle components like battery packs.
A large-scale electric arc steel mill, with a capacity of 2.7 million tons, will also be constructed in Louisiana. Plans are underway to create a low-carbon steel specialized mill to procure high-quality automotive steel locally and mitigate tariff risks.
In the Mirae Industries and energy sectors, $6.3 billion (about 9.3 trillion won) will be executed. The group plans to expand cooperation with various U.S. companies related to future technologies such as autonomous driving, robotics, and artificial intelligence and to accelerate commercialization efforts through its U.S. subsidiaries, Boston Dynamics, Supernal, and Motional.
Investments will also be allocated for the expansion of electric vehicle charging stations, alongside investments in nuclear energy and renewable energy. Hyundai Engineering & Construction will partner with U.S. Holtec International to push for the commencement of the SMR (Small Modular Reactor) project in Michigan by the end of this year. Hyundai Motor Group plans to establish a consortium named ‘Iona’ with U.S. automobile companies to expand charging station installations.
A Hyundai Motor Group official stated, “The large-scale investment in the U.S. stems from a determination to enhance competitiveness and create new possibilities through active challenges and innovations despite an uncertain business environment,” adding, “We aim to create future opportunities through bold investments, internalizing core technologies, and strategic partnerships with top-tier corporations both domestically and internationally.”