Hyundai Motor Group announced plans to invest an additional $5 billion (about 6.9 trillion won) in the U.S. future industries ahead of the Korea-U.S. summit.

Hyundai Motor Group stated on the 26th that it will invest $26 billion (about 36.1 trillion won) in future industries, including U.S. steel, automobiles, and robotics, over the next four years starting this year. This is an increase of $5 billion from the previously announced $21 billion in March.

On the 25th (local time), President Lee Jae-myung (left) attends a reception for the Korea-U.S. business roundtable held at the Willard InterContinental Hotel in Washington, D.C., and greets American corporations at the introduction of Chung Eui-sun (center), Chairman of Hyundai Motor Group./Courtesy of Yonhap News Agency

It will first build an electric arc furnace steel mill in Louisiana with a capacity of 2.7 million tons (t). The plan is to produce low-carbon, high-quality steel plates to supply to key strategic industries in the U.S., such as automobiles.

Hyundai Motor Group explained, "When the Louisiana steel mill is completed, it will be able to build a value chain from steel to parts to finished vehicles within the U.S., enhancing its competitiveness."

It will also expand its automotive production capacity. The U.S. finished vehicle production capacity, which was 700,000 units last year, will be significantly expanded, and a lineup of various types of vehicles, including electric vehicles, hybrid vehicles, and internal combustion engine vehicles, will be established to respond swiftly and actively to U.S. consumer demands.

Parts and logistics affiliates will also expand facilities to increase the localization rate of parts. In addition, efforts will be made to locally source core components of electric vehicles, such as battery packs, to strengthen the supply chain between finished vehicles and parts manufacturers.

In addition, a robot factory with a capacity of 30,000 units will be newly established. The new robot factory is intended to serve as a hub for robot production in the U.S. and to play a central role in the future expanded robot ecosystem.

Furthermore, Hyundai Motor Group plans to expand cooperation with U.S. corporations related to future technologies, including robots, autonomous driving, artificial intelligence (AI), and software-defined vehicles (SDV). It will also accelerate the commercialization efforts of Hyundai Motor Group's local subsidiaries, including Boston Dynamics and Motional.

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