Hyundai to invest $20 billion in U.S. manufacturing including new steel plant

South Korean conglomerate Hyundai is expected to announce a $20 billion investment in U.S.-based operations, including the construction of a $5 billion steel plant in Louisiana. The announcement is scheduled to be made at the White House by President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry.

According to sources familiar with the matter, the Louisiana facility will employ approximately 1,500 people and produce advanced steel products intended for use in Hyundai’s electric vehicle production. The company currently operates two automotive manufacturing plants in the United States—one in Alabama and one in Georgia—and is also expected to confirm the development of a third U.S. plant, also in Georgia.

This investment is part of a broader trend in which international firms are expanding U.S. operations ahead of a planned April 2 tariff deadline. Companies such as Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank have also recently disclosed U.S. onshoring initiatives following meetings at the White House.

In a recent interview, Hyundai Motor CEO José Muñoz stated that increasing local production is the company’s preferred approach to addressing potential tariff impacts.

Hyundai is one of the leading electric vehicle manufacturers in the United States, competing with companies such as Tesla. The company’s new investment is seen as a move to reinforce its supply chain and mitigate the effects of potential trade restrictions.

The announcement also comes amid tensions between the U.S. and South Korea over trade balances. Earlier this month, President Trump criticized South Korea’s tariffs on U.S. goods, claiming they were significantly higher than U.S. tariffs. The South Korean government has contested that claim, citing a 0.79% effective tariff rate on U.S. imports under the existing free trade agreement between the two countries.