On 24 March, the South Korean conglomerate Hyundai announced plans to make a substantial investment of approximately USD 21 billion to boost US onshoring efforts, including USD 5.8 billion for the construction of a steel manufacturing facility in Louisiana, CNBC reported.
The facility, which is expected to create over 1,400 jobs, will produce advanced steel for use in Hyundai’s two US automotive plants for electric vehicle (EV) manufacturing. The investment was officially announced on Monday at the White House, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry in attendance.
Hyundai’s strategy of adapting its manufacturing footprint to local markets is increasingly important as it seeks to mitigate external challenges such as tariffs. In this context, Hyundai Motor CEO José Muñoz recently told Axios that ‘the most effective way for [Hyundai] to address tariffs is by enhancing localisation’.
The new plant will produce cutting-edge, next-generation steel designed specifically to meet the evolving demands of EV manufacturing. This innovative steel will be engineered to offer superior strength, durability, and lightweight properties, which are essential for enhancing the efficiency and safety of electric vehicles. By investing in such advanced materials, Hyundai – a direct challenger to Tesla in the US EV market – aims to boost the performance and competitiveness of its EV models, making them more energy-efficient and environmentally friendly. This commitment to developing state-of-the-art steel highlights Hyundai’s dedication to technological innovation and sustainability in the rapidly growing EV market.
Hyundai already operates two major automotive plants in the United States – one in Alabama and the other in Georgia. Additionally, the company announced on Monday the launch of a third automotive manufacturing facility, also situated in Georgia.
South Korea remains one of the countries with which the United States maintains a trade deficit. In early March, President Trump criticised South Korea for imposing disproportionately high tariffs on US exports, asserting that the tariffs imposed by its Asian ally are four times higher than those applied by the United States.
Seoul has disputed this claim. According to the South Korean government, the effective tariff rate on US imports was just 0.79% as of 2024, thanks to the free-trade agreement between the two nations.
