$20 billion Hyundai investment in US Economy
This significant investment is expected to boost Hyundai's domestic production, create new jobs, and increase the company's competitiveness in the US market, while also helping to navigate the challenges posed by tariffs and trade tensions.
Hyundai has announced a significant investment of $21 billion in the US, including a $5.8 billion steel plant in Louisiana, as part of its strategy to increase localization and avoid tariffs imposed by the US government. The investment will create 1,400 jobs and produce 2.7 million metric tons of steel per year, supplying Hyundai's two US auto plants in Alabama and Georgia.
The new steel plant will produce next-generation steel for electric vehicles, a key area of focus for Hyundai, which is a top seller of electric vehicles in the US. The company plans to invest $9 billion in production and $6 billion in partnerships with US firms to develop new technologies, including autonomous driving and AI. Additionally, Hyundai will buy $3 billion worth of liquefied natural gas from the US, further boosting its domestic investment.
The investment is seen as a response to President Trump's tariffs on trading partners, with the company seeking to avoid potential trade wars and tariffs on vehicle imports. Hyundai Motor CEO José Muñoz stated that "the best way for [Hyundai] to navigate tariffs is to increase localization," highlighting the company's strategy to boost its domestic production and reduce reliance on imports.
The move is expected to have a positive impact on the US economy, creating new jobs and boosting domestic production. As major international companies continue to onshore to avoid tariffs and potential trade wars, Hyundai's investment is a significant development in the US automotive industry.