Hyundai submits to Trump with $US21 billion investment, including EVs and batteries

South Korean automaker Hyundai is to invest a total of $US21 billion in the United States over the next three years in a move which would see the company expand its local production capacity and build a new steel plant in the state of Louisiana.

Hyundai Chairman Euisun Chung made the announcement at the White House alongside US President Donald Trump and Louisiana Governor Jeff Landry, with the president’s spokesperson claiming the move as a victory for Trump’s economic policies, and implicitly the threat of tariffs.

The new investment effectively doubles the total amount the company had invested into the country since it first entered the US market in 1986, and includes $US9 billion to establish an annual local production capacity of 1.2 million vehicles under the Hyundai, Kia, and Genesis brands.

To what degree Hyundai will prioritise its popular electric vehicles (EVs) – including the Hyundai Ioniq 5 and 6 and the newly released 9, along with the Kia EV 6 and EV9 and the newly released EV5 and EV3 – is uncertain.

But the company did specify that EV components such as battery packs would form a key part of a $US6 billion investment in localising its supply of automotive components.

Hyundai Steel, the Group’s steel affiliate, has also committed to building an electric arc furnace (EAF) steel mill in the state of Louisiana which will be capable of producing 2.7 million tonnes of low carbon steel each year.

A further $US6 billion will be invested to drive innovation and expand strategic partnerships with US companies in areas including autonomous driving, robotics, artificial intelligence (AI), and advanced air mobility (AAM).

Some of these key initiatives are already in place, including collaboration with Boston Dynamics to expand the US ecosystem for robotics components and establish a mass-production system; partnering with American technology giant Nvidia to accelerate the development of Ai solutions for future mobility; and supplying robotaxis to Waymo as part of its existing partnership.

Hyundai expects these investments will lead to the creation of 14,000 new direct full-time jobs in the United States by 2028 and generate over 100,000 direct and indirect job opportunities across related industries.