South Korean conglomerate Hyundai on Monday announced a substantial $21 billion, (about 30% of Ghana’s GDP), investment in the U.S., as part of its onshoring efforts. This move includes the establishment of a $5.8 billion steel plant in Louisiana, which is expected to create over 1,400 jobs. The plant will produce advanced steel that will be utilized in Hyundai’s U.S. auto plants for manufacturing electric vehicles (EVs).
The investment was revealed during a White House event attended by President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry. This investment is part of Hyundai’s strategy to enhance its operations in the U.S. amid ongoing concerns over tariffs and trade tensions.
Hyundai’s new steel plant is set to support the company’s two existing U.S. auto plants in Alabama and Georgia, which are focused on electric vehicle production. In addition to the steel plant, Hyundai announced the opening of a third automotive plant in Georgia, further expanding its footprint in the U.S.
Hyundai’s investment comes as several international companies, including Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank, are increasing their U.S. presence to avoid potential tariffs. Hyundai Motor CEO José Muñoz recently indicated that the company’s strategy to navigate trade barriers is to localize more of its production in the U.S.
Competing directly with electric vehicle giant Tesla, Hyundai is already a leading seller of EVs in the U.S. The company aims to solidify its position in the electric vehicle market through this major onshoring investment.
The announcement also occurs as the U.S. continues to address trade imbalances with various countries, including South Korea. President Trump recently criticized South Korea for its tariffs on U.S. exports, suggesting they were higher than those applied by the U.S. to South Korean imports. However, South Korea’s government disputed this claim, noting that its effective tariff rate on U.S. imports stood at 0.79% in 2024, in accordance with their free trade agreement.
