South Korean automaker Hyundai is making its biggest U.S. investment ever, committing $21 billion to build a new steel plant, expand vehicle production, and grow its tech partnerships. The announcement came Monday at the White House alongside President Donald Trump and Hyundai Chairman Euisun Chung.
The biggest part of the plan is a $5.8 billion steel plant in Louisiana, which will be Hyundai’s first in the U.S. The plant will produce over 2.7 million metric tons of steel annually, creating more than 1,400 jobs. It will supply steel to Hyundai’s factories in Alabama and Georgia.
“Hyundai will be producing steel in America and making its cars in America and as a result they’ll not have to pay any tariffs,” Trump said at the event. “You know, there are no tariffs if you make your product in America.”
Hyundai also plans to invest $9 billion to increase its U.S. vehicle production to 1.2 million cars a year by 2028. Another $6 billion will go toward partnerships with U.S. companies working on self-driving cars, artificial intelligence, robotics, and advanced air mobility.
“This investment is a clear demonstration that tariffs very strongly work,” Trump said.
The company is also opening a new $7.6 billion car and battery factory in Georgia this week. Combined with its existing plant in Alabama and Kia’s Georgia plant, Hyundai’s U.S. production will top 1 million vehicles per year.
Hyundai will also buy $3 billion worth of liquefied natural gas from the U.S.
The announcement comes ahead of new tariffs expected on April 2, which could hit countries like South Korea with trade surpluses. Hyundai’s earlier $10 billion investment plan under the Biden administration focused on future tech. The company says this expanded plan was influenced by meetings with Trump and recent trade developments.
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