Hyundai Commits $20 Billion to U.S. Manufacturing
South Korean conglomerate Hyundai is set to unveil a sweeping $20 billion investment into U.S. manufacturing and onshoring efforts, a move that includes a new $5 billion next-generation steel plant in Louisiana. The announcement is expected to be made Monday at the White House alongside President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry.
The new Louisiana facility is projected to employ roughly 1,500 workers and will produce advanced steel materials specifically for Hyundai’s U.S.-based electric vehicle (EV) production. The steel will supply Hyundai’s existing plants in Alabama and Georgia, and a third plant also expected to be announced Monday in Georgia.
Hyundai’s push for U.S. investment comes amid mounting global trade tensions and a fast-approaching tariff deadline set by President Trump for April 2. Several global giants, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Japan’s SoftBank, have recently announced American onshoring initiatives following visits to the White House.
In a recent interview with Axios, Hyundai Motor CEO José Muñoz acknowledged the shifting trade environment, saying that “the best way for [Hyundai] to navigate tariffs is to increase localization.”
Hyundai is currently one of the top sellers of electric vehicles in the U.S., in direct competition with Tesla. The move to vertically integrate steel production and further expand domestic manufacturing underscores Hyundai’s strategy to reduce reliance on imports and bolster its presence in the U.S. market.
The announcement also comes amid renewed trade scrutiny between the U.S. and South Korea. Earlier this month, Trump criticized South Korea for imposing disproportionately high tariffs on American exports. However, Seoul has countered those claims, noting that under the existing U.S.-Korea Free Trade Agreement, the effective tariff rate on U.S. imports is just 0.79%.
While the White House has not officially commented on the upcoming announcement, and Hyundai has declined to provide details, the investment is poised to be a landmark moment in U.S.-Asia trade relations, industrial policy, and EV supply chain localization.
