Korean carmaker Hyundai says it will invest US$21 billion across the EV value chain within the United States in an effort to avoid looming tariffs on the automotive industry.
A quarter (US$5.6 billion) of the capital will be directed towards the construction of a steel factory in Louisiana that will feed into its car production plants in neighbouring Georgia and Alabama.
That will soften the blow on the carmaker having to import parts and vehicles from overseas and be subject to a further 25% levy on 2 April.
US$9 billion will go towards expanding car production in the U.S. up to 1.2 million units per annum, expanding future industries, partnerships and infrastructure - including EV charging.
A further US$6 billion will get spent on parts and supply chains, with the Korean auto giant - which owns the Kia brand too - saying the investment up until 2028 will create >100,000 direct and indirect job opportunities.
The cash injection will also coincide nicely with the release of its long-anticipated Ionic 9, which aims to rival European and Chinese brands for market share.
The White House says Hyundai is far from the only car producer that's announced significant investments in the American automotive supply chain, with trillions of dollars already pledged since Trump took office for a second term.
Carmakers pouring cash into American manufacturing
Stellantis announced a $5 billion investment in its U.S. manufacturing network — including re-opening an Illinois manufacturing plant — as it pledges to increase domestic vehicle production
Volkswagen is considering shifting production of the high-end Audi and Porsche brands to the U.S.
Honda is expected to produce its next-generation Civic hybrid model in Indiana.
Nissan is considering moving production from Mexico to the U.S.
Rolls-Royce expects to “ramp up” production in the U.S. by hiring more American workers and expanding its U.S.-based operations.
Volvo is considering expanding its U.S.-based output.
Hyundai stocks are up 3.9% to 213,000 won per share in Korean trade this morning.
