Hyundai invests $21B to strengthen U.S. manufacturing, innovation, and supply chains
Hyundai Motor Group (HMG) has announced plans to invest $21 billion in its U.S. manufacturing operations from 2025 to 2028. According to the company, this commitment will enhance HMG’s manufacturing capacity, bolster the development of new technologies, and support energy infrastructure expansion across the U.S.
Hyundai Motor Group will allocate $9 billion to expand its U.S. automotive manufacturing operations, enabling the Group to achieve an annual production capacity of 1.2 million vehicles across its automotive brands – Hyundai, Kia, and Genesis. Key upgrades will include investments in major production plants, such as Hyundai Motor Manufacturing Alabama and Kia Autoland Georgia.
Hyundai Motor Group will direct $6 billion towards strengthening its supply chain by increasing the localization of essential automotive components, including key parts for electric vehicles (EVs), such as battery packs. A key part of this initiative is Hyundai Steel’s plan to construct an Electric Arc Furnace (EAF) steel mill in Louisiana, with an annual production capacity of 2.7 million tons of steel. This facility will focus on producing low-carbon steel sheets by utilizing locally available steel scrap.
Hyundai Motor Group is also committing $6 billion to strengthen its innovation efforts and form strategic partnerships with U.S. companies in future industries. Key focus areas include autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM). Initiatives under this investment include:
- Boston Dynamics partnership: Expanding the U.S. robotics ecosystem and creating mass-production systems for robotics components.
- NVIDIA collaboration: Advancing AI-driven solutions for mobility, with an emphasis on autonomous driving and robotics.
- Supernal R&D: Progressing research into electric vertical take-off and landing (eVTOL) vehicles, with commercialization targeted for 2028.
- Autonomous driving with Waymo and Aptiv: Supplying robotaxis and co-developing autonomous driving services.
- Startup investment: Fostering innovation by investing in U.S. startups focused on mobility, robotics, and AI.
As part of the $6 billion investment, the Group will also focus on expanding energy infrastructure in the U.S., including:
- Collaborating on Small Modular Reactor (SMR) technology with Hyundai Engineering & Construction Holtec International.
- Strengthening renewable energy infrastructure across the U.S.
- Partnering with IONNA to expand electric vehicle (EV) charging networks.
These efforts are expected to generate 14,000 new full-time jobs at Hyundai Motor Group by 2028, with a broader economic impact that could create over 100,000 direct and indirect job opportunities across the supply chain, from manufacturing to technology and energy sectors.
Investing in American manufacturing in 2025
This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.