Hyundai is making its biggest investment in the United States, pledging $20 billion to expand its operations.
The South Korean automaker made the announcement at the White House on Monday, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry in attendance.
A key component of this investment is a $5.8 billion steel manufacturing facility in Louisiana, marking Hyundai's first steel plant in North America.
The facility, set to be built near Donaldsonville, will produce more than 2.7 million metric tons of steel annually.
According to CNN, the facility is projected to generate over 1,400 jobs and will provide steel to Hyundai's automotive plants in Alabama and Georgia.
"This investment is a clear demonstration that tariffs very strongly work," Trump said at the event, highlighting his administration's economic policies. The president recently enacted a 25% tariff on imported steel and aluminum, incentivizing companies to shift production to the US.
Chairman Euisun Chung emphasized Hyundai's commitment to American manufacturing. "The decision to open this plant was initiated during my meeting with President Trump in Seoul in 2019. This project coincides with the beginning of President Trump's second term, making this moment even more special," Chung said.
Trump's administration has been encouraging companies to invest in American manufacturing, and Hyundai's expansion is part of a growing trend.
Other global firms, such as Taiwan Semiconductor Manufacturing Company and Japan's SoftBank, have also announced major investments in the US.
Today, President Trump announced Hyundai's $20 BILLION investment in the U.S. 🇺🇸
— The White House (@WhiteHouse) March 24, 2025
"Hyundai is a great company... We have other great companies coming in... We're well into the $3-$4 trillion mark, which has never happened to our country before." – @POTUS pic.twitter.com/nMMHoJRzxi
Hyundai Grows US Presence with New Steel Plant and Georgia Auto Expansion
Hyundai's commitment extends beyond steel production. The company plans to significantly expand its auto manufacturing operations in Georgia and invest in advanced American technology companies.
Trump welcomed the decision, emphasizing that it would lead to increased investments, job creation, and greater financial benefits for hardworking Americans.
Hyundai has been producing vehicles in the US for years, with established manufacturing plants in Alabama and Georgia.
However, the new Louisiana steel plant will help streamline production and reduce dependency on foreign imports.
Trump highlighted that Hyundai's decision to manufacture steel and assemble its vehicles in the United States would allow the company to avoid tariff costs.
The investment comes ahead of an April 2 deadline, when the administration is expected to impose additional tariffs on countries with large trade surpluses, including South Korea, NY Post said.
Trump hinted that some nations might receive exemptions but did not specify which ones.
Hyundai's CEO, José Muñoz, previously acknowledged that the company's investment strategy was shaped by Trump's policies.
He emphasized that expanding operations in the US, Hyundai's key market, was the most effective way to manage tariffs through increased localization.
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