Hyundai Motor Group to Invest 31 Trillion Won in the U.S. Over 4 Years Until 2028

Hyundai Motor Group will invest $21 billion in the United States over the next four years starting this year.



Chairman Chung Eui-sun of Hyundai Motor Group announces investment in the United States at the White House on the 24th (local time). [Photo = Washington AP = Yonhap News]



Hyundai Motor Group announced on the 24th (local time) that it will invest $21 billion (approximately 30.8175 trillion won) in major fields such as automobiles, parts, logistics, steel, and future industries in the United States from this year to 2028.



Hyundai Motor Group will expand the production capacity of Hyundai Motor Group Metaplant America (HMGMA), which is about to be completed, from 300,000 units to 500,000 units in the future, and is pushing forward with the construction of an electric furnace integrated steel mill in Louisiana. It plans to expand cooperation with American companies in future industries such as robotics and artificial intelligence (AI), and also invest in energy-related infrastructure.



The United States is Hyundai Motor Group's largest overseas investment country and business country, and is a country with the world's best technology in future fields. Hyundai Motor Group's strategy is to respond to the US administration's policies, such as rebuilding the US manufacturing industry, and to expand business opportunities in various fields to strengthen its position as a top-tier company in the US through this investment.



Above all, it plans to strengthen its future business competitiveness, including mobility, through a diversified expansion of its US local business base, and to solidify its position as a sustainable company by increasing corporate reliability.



Growth of related domestic industries and creation of new added value are also expected. Hyundai Motor Group's overseas investments have so far improved the value of its overseas local brands and increased global demand. As a result, a virtuous cycle has been formed that has led to the growth of the domestic automobile and parts industries.



In addition, Hyundai Motor Group is making its largest annual investment of 24.3 trillion won in Korea this year.



A bird's-eye view of Hyundai Motor Group Metaplant America (HMGMA), an electric vehicle-only plant in Georgia, US. [Photo = Hyundai Motor Group]



Investing in establishing a local production system of 1.2 million units in the US, establishing an electric furnace steel mill, and strengthening future industry capabilities



Hyundai Motor Group will specifically invest in the following sectors: △automobiles △parts/logistics/steel △future industries/energy



In the automobile sector, Hyundai Motor Group will invest a total of $8.6 billion to establish a local production system of 1.2 million units in the United States.



Starting with Hyundai Motor's Alabama plant (360,000 units) that began operation in 2004, Hyundai Motor Group completed the Kia Georgia plant (340,000 units) in 2010, and HMGMA (300,000 units) this year, and currently has a production capacity of 1 million units in the United States.



Hyundai Motor Group will first expand its production capacity to a total of 500,000 units by increasing HMGMA by 200,000 units. In addition, existing plants such as the Alabama plant and Georgia plant will make supplementary investments to modernize and improve production facilities so that they can continue to produce high-quality new cars. The goal is to solidify the foundation for a production system of 1.2 million units in the future.



In the parts, logistics, and steel sectors, Hyundai Motor Group and Kia Motors will spend a total of $6.1 billion to strengthen the supply chain between automakers and parts companies. In line with the expansion of HMGMA production capacity, facilities will be expanded to increase the localization rate of parts and promote local procurement of key electric vehicle parts such as battery packs.



In addition, a 2.7 million-ton electric furnace steel mill will be built in Louisiana, USA. As a steel mill specializing in low-carbon automotive steel sheets, it will enhance the ability to respond to uncertain external risks such as tariffs by localizing the supply of high-quality automotive steel sheets. In addition, it is expected to secure a new growth engine in the steel sector by creating stable profits based on solid steel demand.



In the future industry and energy sector, $6.3 billion will be executed. It will expand cooperation with leading U.S. companies related to future new technologies such as autonomous driving, robots, AI, and future air mobility (AAM), and accelerate the commercialization of Hyundai Motor Group's U.S. subsidiaries Boston Dynamics, Supernal, and Motional.



Hyundai Motor Group is forming strategic partnerships with leading innovative companies in the U.S. and expanding collaboration between them. With NVIDIA, we are carrying out various projects to make core mobility solutions such as software-centric vehicles (SDVs) and robotics more intelligent and to strengthen the application of AI technology throughout business operations. We are working with Waymo, a US autonomous driving company, to expand the self-driving taxi service 'Waymo One' using the Ionic 5 produced by HMGMA in the US.



Boston Dynamics and the 'Robotics and AI Institute (RAI)' are strengthening their capabilities to develop intelligent robots based on reinforcement learning. Supernal is pursuing collaboration with several US states for drone testing with the goal of commercializing the AAM aircraft in 2028. Motional, a US autonomous driving subsidiary, is also advancing autonomous driving technology above level 4 using autonomous driving data collection and AI model learning. We are also discovering promising startups related to future technologies and making preemptive investments.



We are also expanding electric vehicle charging stations along with investments in the nuclear and renewable energy sectors.



Hyundai Engineering & Construction is joining hands with Holtec International in the US to begin construction of a small modular reactor (SMR) in Michigan by the end of this year. Hyundai Engineering acquired the rights to a solar power plant in Texas, USA last year and is accelerating preparations for commercial operation in the first half of 2027. It also plans to expand the installation of charging stations through IONNA, an electric vehicle ultra-fast charging service alliance with automakers in the US.



Hyundai Motor Group to execute 24.3 trillion won in investment this year, the largest ever in Korea



Hyundai Motor Group is also expanding its domestic investment. Earlier this year, Hyundai Motor Group announced that it would invest a record 24.3 trillion won this year to strengthen future competitiveness centered on Korea, the mobility innovation hub. This amount is an increase of more than 19% compared to last year's 20.4 trillion won.



Specifically, △11.5 trillion won in research and development (R&D) investment, △12 trillion won in current investment, and △800 billion won in strategic investment.



R&D investment will be used to secure core future capabilities such as improving product competitiveness, electrification, SDV, hydrogen products, and development of original technologies.



Current investment will be used for infrastructure supplementation such as the transition to electric vehicles (EVs), expansion of production facilities for new vehicles, innovation of manufacturing technology, and customer experience hubs. Strategic investment will be executed to enhance the competitiveness of core future businesses such as autonomous driving, SW, and AI.



In particular, large-scale investment will be made in the construction of a dedicated EV plant. In the second half of this year, Kia plans to complete the Hwaseong EVO Plant and begin full-scale production of customer-tailored PBV electric vehicles. Hyundai Motor Company's Ulsan EV-only plant, currently under construction with a target of operating in the first half of 2026, plans to mass-produce various models, starting with an ultra-large sports utility vehicle (SUV) electric vehicle.



A Hyundai Motor Group official said, "Hyundai Motor Group's large-scale investment in Korea and the U.S. is a demonstration of our will to strengthen our future competitiveness through proactive challenges, constant change, and innovation, without being discouraged by uncertain business environments at home and abroad, while creating new possibilities for humanity." He added, "We will create future opportunities through bold investments, internalization of core technologies, and strategic cooperation with top-tier companies at home and abroad."





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