Hyundai Unveils $21 Billion Investment Plan in the U.S.

South Korean multinational Hyundai revealed on Monday a significant $21 billion investment in U.S. manufacturing, which includes a $5.8 billion steel facility in Louisiana.

This new plant is expected to employ over 1,400 workers and will manufacture advanced steel components for Hyundai’s two U.S.-based factories specializing in electric vehicle production. The investment was officially disclosed at the White House, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry in attendance.

CNBC had previously reported on the anticipated announcement and investment details.

Hyundai’s decision aligns with efforts by global corporations to sidestep tariffs and mitigate potential trade conflicts ahead of Trump’s April 2 tariff deadline. In recent months, major international firms such as Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank have also engaged with the White House to unveil their U.S. expansion strategies.

Hyundai Motor CEO José Muñoz recently told Axios that the “the best way for [Hyundai] to navigate tariffs is to increase localization.”

A dominant player in the U.S. electric vehicle market and a direct competitor to Tesla, the South Korean automaker already operates two large-scale production facilities in Alabama and Georgia. On Monday, Hyundai further confirmed the launch of a third manufacturing plant, also in Georgia.

The trade relationship between the U.S. and South Korea has been a subject of contention. In early March, Trump criticized South Korea for imposing significantly higher tariffs on U.S. exports, claiming the country’s rates were four times those of the United States.

However, Seoul has refuted this assertion. According to the South Korean government, as of 2024, the actual tariff rate on U.S. imports was 0.79%, citing the existing free trade agreement between both nations.