Hyundai Motor Group said it was shifting to invest $21 billion expanding its electric vehicle manufacturing factories in the United States in an enormous shift that would be among the largest-foreign auto investments ever in the nation and demonstrates Hyundai’s seriousness in capitalizing on the growing EV market.
The huge investment will fund a number of projects across Hyundai’s US operations by 2030. At the center is construction of a new $5 billion battery factory outside Savannah, Georgia. The state-of-the-art factory, set to open in 2027, will create around 3,500 jobs and have the potential to produce batteries for 300,000 electric vehicles per year.
Hyundai will also expand the existing Montgomery assembly plant to make the all-new IONIC 7 electric SUV in 2026. The factory will also produce two additional EV models by 2028, thereby strengthening Hyundai’s local electric vehicle lineup. The automaker plans to launch 13 new electric models in the U.S. market throughout 2027 under its demographic plan to sell 1 million EVs in North America through 2030.
The investment comes at a critical time as automakers gear up to qualify for federal tax credits under the Inflation Reduction Act. Its requirements dictate that electric vehicle battery sourcing be done within North America for full tax credit, and hence Hyundai’s domestic production of batteries is highly strategic. By localizing its supply chain, Hyundai aims to reduce reliance on overseas suppliers as well as its cars’ U.S. price competitiveness.
Hyundai Motor Group President Jaehoon Chang emphasized the company’s long-term investment in American manufacturing during the announcement. “This investment indicates that we have confidence in the U.S. market and workers,” Chang explained. “By reinforcing our in-country manufacturing capabilities, we will be able to better serve our customers while supporting the country toward cleaner transportation.”
The project is anticipated to create about 15,000 direct jobs at Hyundai factories, with thousands of indirect jobs anticipated across supply chains in Georgia, Alabama, and nearby states. State officials welcomed the economic boon, with Georgia Governor Brian Kemp describing the investment as transformational for the region’s manufacturing sector.
These industry observers say Hyundai’s aggressive strategy gives it a better chance to compete with market leaders like Tesla and traditional manufacturers, Detroit-style. This also implies that the entire industry gradually embraces electrification, with global automakers now vying to set up local production capacity for EVs and components.
While green groups appreciated Hyundai’s emphasis on electric mobility, certain activists called for continued attention to sustainable practices within the EV value chain, particularly in the acquisition of battery raw materials.
The news was greeted with favorable investor reaction, with stocks in Hyundai Motor Group rising 3.5% in Seoul trading after the news. The enormous investment is a move Hyundai wants to make to become a behemoth in America’s electric vehicle revolution and grow its stake in the highly competitive U.S. auto market.
