This post was originally published on Wards Auto
Hyundai Motor is investing $21 billion to expand U.S. manufacturing, a plan President Trump claims credit for in a recent joint announcement with the South Korean automaker, chalking up the investment in steel, batteries and vehicle production to his tariff-focused policy.
Numerous news reports indicate the auto industry will face lower levies than Trump has threatened over the last two months when the White House makes its tariff announcements on April 2. The auto industry — individual companies and the Alliance for Automotive Innovation — has lobbied the administration about investments that are in motion and the billions in financial fallout that would result from automakers and suppliers paying the tariffs and passing on higher prices to consumers.
The impending tariffs drove the timing of Hyundai’s announcement and were key in the company’s discussions with the administration, according to an executive with knowledge of the process who spoke to WardsAuto but isn’t authorized to speak for the South Korean automaker. Hyundai’s investment plans were in motion before Trump took office, said the same executive, and are broadly supported by incentives spearheaded by President Biden. The Inflation Reduction Act signed into law in August 2022, allocated substantial funding to bolster domestic manufacturing of clean-energy technologies, including electric vehicles and batteries. The act provides tax credits and grants aimed at encouraging companies to establish and expand manufacturing facilities in the U.S.
The Bipartisan Infrastructure Law, enacted in November 2021, earmarked $7 billion to strengthen the U.S. battery-supply chain. The DOE has since awarded grants to various companies to support battery manufacturing and critical mineral processing. The Biden DOE initiated programs to support the conversion of existing manufacturing facilities to EV production.
The company, which also produces steel, says the investment through 2028 would include $6 billion for a steel factory in Louisiana expected to employ 1,300 people and for other projects to supply Hyundai plants with parts and materials.
The company will also spend $9 billion to expand production of Hyundai, Kia and Genesis vehicles in the U.S. The rest of the money will be used for projects that include expanding supplies of renewable energy, building more electric-vehicle chargers and conducting research on robots and autonomous driving. The Trump Admin. has said it is freezing further federal funds being spent on supporting public EV charging.
“Money is pouring in,” Trump says at the White House event that included Gov. Jeff Landry of Louisiana and Euisun Chung, the executive chair of Hyundai.
South Korea faces the risk of increased tariffs under Trump’s plans to impose new levies on countries he perceives as engaging in unfair trade practices, and South Korea is among the nations identified.
These tariffs are set to be enacted on April 2. U.S. companies pay all tariffs levied on goods imported from foreign countries, not the countries themselves. The Hyundai Group, including its Hyundai, Kia and Genesis brands, currently exports 10 models to the U.S. from South Korea and other countries.
Hyundai Motor Group operates two manufacturing facilities in the U.S.: Hyundai Motor Manufacturing Alabama, located in Montgomery, AL, has an annual production capacity of approximately 370,000 vehicles; Hyundai Motor Group Metaplant America, in Bryan County, GA, began production in October 2024. The plant is projected to produce up to 300,000 electric vehicles annually once fully operational.
Combined, these facilities have the capacity to manufacture some 670,000 vehicles per year. In 2024, the Hyundai brand’s total U.S. sales reached 837,000 units, per WardsData, marking a 4% increase compared to 2023 and setting a new annual sales record for the brand.
South Korean officials have been seeking exemptions from the impending tariffs. The country’s industry minister has engaged in multiple discussions with U.S. Commerce Secretary Howard Lutnick, advocating for favorable treatment, according to Reuters.
