SUMMIT Hyundai Motor Group levels up US investment after summit

Hyundai Motor Group Executive Chair Chung Euisun, center, listens as Nvidia CEO Jensen Huang, right, speaks during the Korea-U.S. Business Roundtable at the Willard InterContinental Washington, Monday (local time). Yonhap

Hyundai Motor Group will ramp up its U.S. investments by $5 billion to $26 billion for the next four years in a drive to build a stronger mobility value chain that covers steelmaking, automobiles and robots, the carmaker said following the Korea-U.S. Business Roundtable in Washington, Monday (local time).

The Korean company aims to navigate mounting policy challenges in the U.S. by increasing their investment in the three strategic areas. The latest announcement came shortly after President Lee Jae Myung held his first summit with U.S. President Donald Trump.

Hyundai Motor Group expressed hopes of widening business opportunities in the U.S. by bolstering its competitiveness in future mobility.

Under the large-scale investment drive, Hyundai Motor Group will build a steel mill in the U.S. state of Louisiana. The facility will be capable of producing 2.7 million tons of steel each year. Quality low-carbon steel products from the mill will be supplied to key industries in the U.S., according to the company.

“Once we finish construction of the facility, Hyundai Motor Group will be able to build a complete value chain of producing not just steel, but auto parts and automobiles in the U.S., which will enhance our mobility competitiveness there,” a Hyundai official said.

The company also plans to increase its vehicle production capacity in the world’s largest economy over the next few years so it can reduce possible earnings losses from the 15 percent auto tariff applied by the U.S. to imported Korean vehicles.

Last year, Hyundai Motor Group’s auto manufacturing capacity in the U.S. reached 700,000 units. The company plans to expand the figure to more than 1.2 million after the new steel mill starts operations, possibly in 2029.

The group also shared its plan to source more localized parts for its electric vehicle models and gradually strengthen its alliance with local auto parts makers.

The invested capital will also be used to turn the U.S. into the firm’s major hub for robot production, the company said.

The carmaker acquired Boston Dynamics in 2021 to tap deeper into the robotics business. As part of its latest drive, the carmaker will establish a robot production factory with an annual capacity of 30,000 units in the U.S.

On the research front, the company displayed willingness to deepen partnerships with major U.S. tech firms in the areas of artificial intelligence, autonomous driving and software-defined vehicles.