Hyundai is set to announce a $20 billion investment in U.S. manufacturing, which includes a new $5 billion steel plant in Louisiana, according to sources familiar with the plans. The announcement is expected Monday at the White House, where President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry are slated to attend.
The Louisiana steel plant will produce advanced steel for Hyundai’s U.S. auto plants, including those focused on electric vehicle (EV) production, and create around 1,500 jobs. Hyundai is also expected to reveal plans for a third automotive plant in Georgia, further cementing its growing presence in the U.S. auto market.
This move comes at a time when multinational companies are ramping up operations in the U.S. due to rising trade tensions. President Trump has set a deadline of April 2 for imposing tariffs on countries that impose duties on U.S. imports. As a result, companies like Taiwan’s TSMC and Japan’s SoftBank have made similar onshoring announcements in recent months. Hyundai’s strategy, according to CEO José Muñoz in an interview with Axios, focuses on “increasing localization” to mitigate tariff concerns.
As one of the leading electric vehicle manufacturers in the U.S., Hyundai is vying with Tesla in the rapidly growing EV market. The company’s existing U.S. operations include major plants in Alabama and Georgia.
Trump has previously criticized South Korea’s trade practices, particularly high tariffs on American goods. However, South Korea disputes these claims, stating that the effective tariff rate on U.S. imports was only 0.79% as of 2024, citing the U.S.-South Korea free trade agreement.
In financial markets, Hyundai Motor shares saw a notable increase on Monday, rising 4.39% on the KOSPI market amid speculation that the new trade measures might exempt automobile tariffs. Kia and Hyundai Mobis also saw gains, reflecting optimism in the automotive sector. Samsung Securities’ Lim Eun-young noted that the possibility of tariff exemptions has buoyed Hyundai and Kia stocks, further fueled by other growth factors, such as Hyundai’s partnership with General Motors and advances in robotics technology.
Both Hyundai and the White House declined to comment ahead of Monday’s official announcement.
Sources: Axios, Reuters
