Hyundai Motor Group plans $7.4 billion investment in US manufacturing by 2025

Hyundai’s new petrol-engined Tucson SUV on the production line in the Alabama factory. Image: Hyundai

Hyundai Motor Group (HMG), which includes Hyundai Motor Company and Kia Corporation, announced its plan to invest $7.4 billion in the U.S. by 2025 to produce future EVs and enhance its production facilities.

José Muñoz, Hyundai Motor Company’s Global Chief Operating Officer and President and CEO of Hyundai Motor North America said, “I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the U.S. market, our dealers and customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up.”

HMG plans to bring a range of American-made electric vehicles to U.S. consumers from 2022, starting with the Hyundai Ioniq 5 and Kia EV6.

HMG is also working with the U.S. government and other business partners to expand the U.S. hydrogen energy ecosystem. HMG signed an MOU with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion. This included the installation of a hydrogen refueling station and providing NEXO SUVs.

HMG will also launch a subsidiary in Washington, D.C. to spearhead the Group’s Urban Air Mobility (UAM) businesses. The subsidiary will focus on creating an UAM technology ecosystem, and follows the group’s purchase of robotics company Boston Dynamics in 2020.

This vote of confidence in the U.S. by HMG comes after President Biden announced the acceleration of government spending to increase EV uptake, including $174 billion in incentives, tax credits, and rapid chargers.

Hyundai’s Montgomery Alabama factory. Image: Hyundai