Hyundai Motor Group has announced plans to invest $21 billion (approximately 30.8 trillion KRW) in the United States from 2024 to 2028 across key sectors, including automotive manufacturing, parts and logistics, steel, and future industries.

The Group intends to expand the production capacity of Hyundai Motor Group Metaplant America (HMGMA) from 300,000 to 500,000 units and pursue the construction of an electric arc furnace(EAF) steel mill in Louisiana. Additionally, it plans to enhance collaboration with U.S. companies in future-focused fields such as robotics and artificial intelligence (AI) and allocate funds to energy infrastructure projects.

Through this investment, Hyundai Motor Group aims to align with the U.S. government’s initiatives to revitalize domestic manufacturing, expand business opportunities across various sectors, and further solidify its position as a leading global enterprise.

A key focus is to strengthen its competitive edge in future mobility solutions, enhance corporate credibility, and establish itself as a sustainability-driven enterprise by expanding its local operational presence.

The investment is expected to stimulate economic growth in both South Korea and the United States, fostering deeper economic cooperation between the two nations.

Moreover, it is anticipated to boost the growth of related industries in South Korea, creating new value. Hyundai Motor Group’s previous global investments have significantly enhanced its local brand recognition, increased global demand, and established a virtuous cycle supporting the growth of the South Korean automotive and parts sectors.

Simultaneously, the Group is making a record-high domestic investment of 24.3 trillion KRW(approximately $18 billion USD) in 2024 to strengthen its capabilities in mobility innovation, establishing a production capacity of 1.2 million units in the U.S., constructing the electric arc furnace steel mill, and advancing future industry competencies.

Specifically, Hyundai Motor Group will allocate $8.6 billion(about 11.9 trillion KRW) to the automotive sector to establish the targeted 1.2 million-unit production capacity. With existing facilities such as the Hyundai Alabama plant (360,000 units), the Kia Georgia plant (340,000 units), and the HMGMA plant (300,000 units), the Group’s current U.S. production capacity stands at 1 million units.

By expanding HMGMA’s capacity by 200,000 units, the total production capability will reach 500,000 units. Furthermore, Hyundai Motor Group will modernize and enhance the operational efficiency of its Alabama and Georgia plants to ensure the continuous production of high-quality vehicles, consolidating its 1.2 million-unit target.

In the parts, logistics, and steel sectors, the Group will invest $6.1 billion(approximately 8.4 trillion KRW) to reinforce its supply chain by increasing the localization of parts and securing core EV components, including battery packs.

As part of its efforts to localize the supply of high-quality automotive steel sheets and mitigate external uncertainties such as tariffs, Hyundai Motor Group will construct a 2.7 million-ton electric arc furnace steel mill in Louisiana. This specialized low-carbon steel production facility is also expected to generate stable revenue and establish new growth engines for its steel business.

In the future industries and energy sectors, Hyundai Motor Group will allocate $6.3 billion(approximately 8.7 trillion KRW) to foster partnerships with leading U.S. companies in autonomous driving, robotics, AI, and advanced air mobility (AAM). Key subsidiaries, including Boston Dynamics, Supernal, and Motional, will accelerate commercialization efforts.

Strategic alliances with innovative firms such as NVIDIA will enhance the integration of AI technologies into software-defined vehicles (SDVs), robotics, and other mobility solutions. Furthermore, the Group will expand autonomous taxi services through its collaboration with Waymo, utilizing HMGMA-produced IONIQ 5 vehicles.

Boston Dynamics, alongside its Robotics and AI Institute (RAI), will continue to develop intelligent robots using reinforcement learning. Supernal is targeting the commercial launch of AAM vehicles by 2028, collaborating with multiple U.S. states for unmanned aerial vehicle testing. Meanwhile, Motional will further advance Level 4 autonomous driving technologies through AI model training and extensive data collection.

Hyundai Motor Group also plans to identify and invest in promising startups in emerging technologies, make proactive investments in nuclear power and renewable energy sectors, and expand its EV charging network through the IONNA initiative.

Hyundai E&C, in partnership with Holtec International, will commence construction on a small modular reactor (SMR) in Michigan later this year. Hyundai Engineering is expediting preparations for commercial operations at a recently acquired solar power plant in Texas, targeting a launch by the first half of 2027. Additionally, Hyundai Motor Group will expand its ultra-fast EV charging infrastructure across the U.S. through its IONNA joint venture.

Domestically, Hyundai Motor Group has announced plans to invest a record 24.3 trillion KRW(approximately $18 billion) in 2024, a 19% increase from the 20.4 trillion KRW(approximately $15.3 billion) allocated in 2023.

The investment breakdown includes 11.5 trillion KRW(approximately $8.7 billion)  for R&D, 12 trillion KRW(approximately $9.1 billion) for operational expenses, and 800 billion KRW(approximately $610 million) for strategic investments.

A significant portion of the funds will be allocated to building dedicated EV factories. The Kia Hwaseong EVO Plant, set for completion in the second half of this year, will specialize in producing customer-oriented PBV electric vehicles. Hyundai’s Ulsan EV plant, scheduled for completion in the first half of 2026, will commence mass production with a large SUV EV model and subsequently expand to produce a diverse range of EVs.

Hyundai Motor Group stated, “Our substantial investments in South Korea and the U.S. reflect our unwavering commitment to enhancing future competitiveness through bold innovation and strategic collaboration with top-tier companies. By internalizing core technologies and expanding cooperative partnerships, we will unlock new opportunities in the mobility sector and beyond.”