Hyundai Motor Company plans to invest approximately 600 billion won (about $450 million) in its Alabama plant to expand production capabilities for hybrid vehicles and extended-range electric vehicles (EREV). This move aims to enhance competitiveness in the electrification market by increasing local production in North America.
According to Hyundai, the Hyundai Motor Manufacturing Alabama (HMMA) announced on October 28 (local time) that it will invest $450 million in its Montgomery facility.
The investment will be allocated to new engine production facilities, the introduction of EREV-related technologies, and the establishment of production lines for the next-generation Tucson and Santa Fe models. With this investment, the cumulative investment in Hyundai's Alabama plant will rise to approximately $2.2 billion. The group plans to invest $26 billion in the U.S. by 2028.
Hyundai Group has established a foundation for producing various engines applicable to hybrid and EREV vehicles through this investment. The company plans to introduce new equipment and molds while expanding its manufacturing infrastructure to prepare for future vehicle production. The group has also begun preparations for the production of updated models of the next-generation Tucson and Santa Fe.
Earlier, Hyundai Motor CEO José Muñoz announced at the 2026 Automotive News Congress in Detroit last month that the company would produce Tucson hybrid vehicles at the Alabama plant and later introduce the Santa Fe EREV.
Meanwhile, the investment announcement event was attended by Alabama Governor Kay Ivey, Alabama Secretary of Commerce Ellen McNair, and Korean Ambassador to the U.S. Cho Hyun. Ambassador Cho stated, "Hyundai's investment in the U.S. is a prime example of the U.S.-Korea alliance in action," adding that this additional investment will further deepen integration between the automotive industries of the two countries.
* This article has been translated by AI.
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