Hyundai Motor to add $5 billion to US investment, bringing total to $26 billion

Hyundai Motor Group Chairman Chung Eui-sun speaks with IBM Vice Chairman Gary Cohn during the Korea-US Business Roundtable reception held at the Willard Hotel in Washington DC on Aug 25 local time Yonhap — Hyundai Motor Group Chairman Chung Eui-sun speaks with IBM Vice Chairman Gary Cohn during the Korea-U.S. Business Roundtable reception held at the Willard Hotel in Washington, D.C., on Aug. 25 (local time). Yonhap

SEOUL, August 26 (AJP) - Hyundai Motor Group said on Tuesday it would commit an additional $5 billion to its U.S. operations, expanding its planned investment through 2028 to $26 billion.

The announcement coincided with the South Korea–U.S. summit between Lee Jae Myung and Donald Trump.

Hyundai, which had already pledged $21 billion in March, said the new funds would be directed toward steel, automobiles and robotics.

Chairman Chung Eui-sun outlined the plan as part of a broader effort to strengthen the company’s competitiveness in electric vehicles and other future industries while deepening economic cooperation with the United States.

A centerpiece of the new investment is a 2.7 million-ton electric arc furnace steel mill in Louisiana, which will produce low-carbon, high-grade steel for U.S. industries, including automotive manufacturing.

Once completed, the facility will create what Hyundai described as a fully localized value chain linking steelmaking, parts production and vehicle assembly.

Hyundai also intends to significantly expand vehicle output at its U.S. plants. The company, which produced about 700,000 vehicles in the United States last year, plans to broaden its lineup to include more electric models alongside hybrids and internal combustion engine cars, with the aim of responding more flexibly to consumer demand.

The company’s affiliates will ramp up investment in parts and logistics to raise local sourcing rates, particularly for batteries, in order to strengthen supply chain integration with assembly operations.

Hyundai said it will also build a new robotics factory with an annual production capacity of 30,000 units, positioning it as a hub for its U.S. robotics business.

The group will expand collaboration with American companies in autonomous driving, artificial intelligence and software-defined vehicles, while accelerating the work of its U.S. subsidiaries, including Boston Dynamics and Motional.

Lim Jaeho ajupresswogh@ajupress.com