Hyundai Motor Group announced plans to spend $21 billion in the United States between 2025 and 2028, a move that signals increasing pressure on foreign automakers to localize operations as trade policy continues to shift under mounting scrutiny from lawmakers and domestic industry advocates.
The announcement comes as the South Korean automotive giant seeks to expand its U.S. footprint across manufacturing, electric vehicles, robotics, and autonomous driving technologies. Hyundai confirmed the plan during a press briefing, saying the investment aims to “fortify [its] presence” in American industry. That presence will include expansions to its EV Metaplant in Georgia and a new steel manufacturing facility in Louisiana.
U.S. Policy Signals a Warning to Foreign Producers
Hyundai’s announcement is not happening in a vacuum. The company’s push to localize appears closely timed with intensifying rhetoric in Washington around enforcing the Inflation Reduction Act and scrutiny of Chinese-affiliated supply chains.
The Biden administration has recently weighed heightened tariffs on Chinese EVs, citing national security concerns tied to data surveillance risks from connected car technologies, according to Politico. Hyundai, while not Chinese-owned, has clearly taken notice. The company has already committed $7.6 billion in previous U.S. investments, but this week’s announcement brings its total to above $28 billion by 2028.
The largest share of this new commitment—around $9 billion—is earmarked for expanded vehicle production and local infrastructure. The rest will go toward future-facing technologies such as AI, robotics, and autonomous mobility.
Hyundai Metaplant and U.S. Steel Commitment
In Bryan County, Georgia, Hyundai is ramping up operations at its Metaplant America, which began partial production in 2024 and is slated to become fully operational this year. The plant is expected to produce 300,000 vehicles annually and has already begun hiring thousands of American workers, as reported by the Atlanta Journal-Constitution.
Separately, Hyundai is partnering with its steel-making subsidiary to build a $5.8 billion steel factory in Louisiana, which will supply its own U.S. production facilities and help reduce reliance on foreign inputs. The factory is projected to create more than 1,400 permanent jobs, according to Reuters.
Local Manufacturing Still Trails Import Volume
Despite this sizable investment, Hyundai—like most foreign automakers—continues to import a large share of its vehicles sold in the U.S. market. In 2023, Hyundai and Kia sold more than 1.5 million vehicles in the United States, but less than half were assembled domestically, per Automotive News.
While the company’s push to build more vehicles on U.S. soil may be welcomed by some policymakers, it’s also a strategic hedge. As lawmakers explore reforms to the de minimis loophole and increase scrutiny of non-American supply chains, automakers with limited U.S. content may find themselves at a competitive disadvantage.
