South Korean conglomerate Hyundai — aka the company behind your favorite electric vehicle — is expected to announce a huge $20 billion investment in U.S. onshoring initiatives. The final winner will be announced at the White House. Hyundai Chairman Euisun Chung, former President Donald Trump, and Louisiana Governor Jeff Landry are all expected. Their attendance is a testament to the importance and high-profile nature of the event.
A significant portion of this investment, approximately $5 billion, will be allocated to construct a new steel plant in Louisiana. This decision further solidifies Hyundai’s promise to expand its manufacturing footprint inside the United States.
Hyundai, currently the second-largest seller of electric vehicles in the U.S., directly competes with Tesla in this stunningly growth market. The company currently manufactures vehicles at two large-scale automotive plants in the U.S., both in Alabama and Georgia.
For example, the new steel plant in Louisiana is expected to produce about 1,500 jobs. The steel to be produced at the new plant will primarily supply Hyundai’s recently announced automotive plants in Alabama and Georgia. These plants will put the steel to work producing electric vehicles. Additionally, Hyundai is now slated to open a third automotive plant in Georgia.
This important strategic investment comes just as foreign multinational companies operate in much more complicated and volatile trade atmospheres. They do everything within their power to avoid the impact of tariffs and upcoming trade wars. Former President Trump’s forthcoming April 2 tariff deadline brings even greater urgency to these choices.
The best way for [Hyundai] to navigate tariffs is to increase localization. - Hyundai Motor CEO José Muñoz
Hyundai's decision to expand its U.S. operations reflects a broader trend among global manufacturers to establish stronger domestic supply chains. The firm has further suffered from retaliatory tariffs placed by South Korea on American exports.
