Hyundai expands US investment plan to $26b, adds robotics hub

Hyundai Motor Group said Tuesday it is raising its US investment to $26 billion over the next four years — $5 billion more than a pledge made in March — as it steps up efforts in automobiles, steel and robotics to align with Washington’s industrial policies.

This announcement followed Hyundai Motor Group Executive Chair Chung Euisun's attendance at the Korea-US Business Roundtable held in Washington on Monday, after the Korea-US summit.

“The additional $5 billion investment will primarily focus on the new robotics plant, while also increasing funding for the automotive, steel, autonomous driving, artificial intelligence and future business sectors announced in March,” said an official from Hyundai Motor Group.

Boosting its commitment to revitalizing US manufacturing, Hyundai plans to build a robotics factory with a 30,000-unit annual capacity, establishing it as its US robotics hub and a key part of its growing robotics ecosystem.

The Korean auto giant has underscored the robotics sector as one of the key drivers of growth, having acquired the Massachusetts-based Boston Dynamics in 2021. The robotics subsidiary has developed advanced robots, including Atlas, a humanoid robot suited for industrial tasks, and Spot, a four-legged robot primarily used for inspection.

In automobiles, Hyundai plans to significantly expand its US production capacity beyond last year’s 700,000 units. Production was heavily impacted by the 25 percent tariffs imposed by Washington in April, which were adjusted to 15 percent as of August 1. The expanded lineup will include hybrids and internal combustion models as well as electric vehicles to better meet fast-changing consumer demand.

To support this initiative, Hyundai’s parts and logistics subsidiaries will increase production facilities, boost local sourcing of components and strengthen the supply chain for key EV parts such as battery packs.

Another crucial step in completing the full auto supply chain across steel, parts and vehicles in the US involves establishing a 2.7-million-ton electric arc furnace steel plant in Louisiana, as announced in March. Constructed by Hyundai Steel, the facility will supply low-carbon, high-quality steel for the automaker and other strategic US industries.

Hyundai will also accelerate collaborations with leading US firms in autonomous driving, artificial intelligence and software-defined vehicles while advancing commercialization through its US subsidiaries, such as Boston Dynamics and Motional — the self-driving joint venture with Aptiv.

In March, Chung announced a $21 billion investment in the US at the White House alongside Donald Trump, allocating $8.6 billion for automotive production; $6.1 billion for steel, car parts and logistics; and $6.3 billion for autonomous driving, robotics, artificial intelligence and Advanced Air Mobility.

This marked the first time a Korean company unveiled a major US investment at the White House since the start of the second Trump administration in January.