ELLABELL, Georgia – When Hyundai Motor Group honorary chairman Chung Mong-koo opened the South Korean automaker’s first US plant in Alabama back in 2005, competing with other global peers in the country was literally a tough nut to crack.
Fast forward two decades now, it is no exaggeration to say that Hyundai is the name of the game. It is among the top four brands in the US and the No. 3 globally.
His son Chung Euisun, the automotive group’s executive chairman, on Wednesday raised his company to the next level by opening Hyundai Motor Group Metaplant America LLC (HMGMA) in Ellabell – part of the Korean automaker’s largest US investment and the largest economic development project in Georgia’s history.
As Hyundai moves into its next phase of US expansion, one thing is clear: It’s “not just cutting ribbons anymore. It’s breaking new ground,” as Georgia Governor Brian Kemp put it.
Hyundai Motor Group, which encompasses Hyundai Motor Co., sister firm Kia Corp. and premium brand Genesis, said it has completed construction of the $8 billion electric vehicle (EV) plant with an annual production capacity of 300,000 vehicles in Georgia, which will allow it to manufacture at least 1 million vehicles annually when combined with its two other plants in the US.
The milestone comes just days after Chung made a surprise visit to the White House, at the request of President Donald Trump, to unveil a $21 billion investment package, including the HMGMA expansion and a new vertically integrated electric steel mill built by Hyundai Steel Co. in Louisiana – a move symbolic of Hyundai’s ambition to control its supply chain “from molten metal to mobility” on US soil.
“With the rich history of craftsmanship and manufacturing in this community, together with the talented workforce at HMGMA, we are building the future of mobility with America, in America,” said the Hyundai chairman at a speech during the inauguration ceremony.
The event was also attended by Georgia Gov. Brian P. Kemp, US Representative Buddy Carter, Hyundai Motor Group Vice Chair Chang Jae-hoon Chang, Hyundai Motor CEO José Muñoz and Kia CEO Ho Sung Song, as well as HMGMA employees, called “Meta Pros.”
TRUMP TARIFF LOOMS
The opening of HMGMA comes at a critical juncture.
On Thursday, Trump unveiled a 25% tariff on imported vehicles, expanding a global trade war and prompting criticism and threats of retaliation from affected US allies.
The new levies on cars and light trucks will take effect on April 3, the day after Trump plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the US trade deficit. They come on top of duties already introduced on steel and aluminum, and on goods from Mexico, Canada and China.
By preemptively scaling up US-based manufacturing, analysts said that Hyundai aims to offset the auto tariff’s negative impact on its US business and improve its price competitiveness.
Hyundai Motor Group sold 1.71 million vehicles in the US last year – 910,000 from Hyundai and 800,000 from Kia – ranking fourth behind General Motors with 2.69 million units, Toyota with 2.33 million and Ford with 2.07 million.
With the Georgia plant, Hyundai now aims to overtake Ford and break into the ranks of America’s automotive Big Three.
Globally, Hyundai already sits in third place behind Toyota and Volkswagen.
FACILITY RAMP-UP AT HMGMA
The new plant, sprawling over 11.8 million square meters – roughly four times the size of Seoul’s Yeouido financial district – will be ramped up to produce 500,000 units a year within the next few years.
Combined with its Alabama factory with a capacity of 360,000 units and Kia’s Georgia plant in West Point with 340,000 units, the group is poised to build up to 1.2 million vehicles annually in the US, equivalent to 70% of its 2024 sales in the market.
In October 2024, less than two years after breaking ground, the first electric vehicle – a Hyundai IONIQ 5 – rolled off the HMGMA’s assembly line.
Hyundai’s IONIQ 9 three-row electric SUV is also now in production at HMGMA and will be joined in 2026 by the first Kia model to be built at the facility.
In addition to manufacturing EVs for Hyundai, Genesis and Kia, the plant is also equipped to produce hybrid vehicles.
Kia CEO Song said Kia will account for roughly 40% of HMGMA’s production, mostly hybrids.
INNOVATIVE MANUFACTURING SYSTEM
All of HMGMA’s processes – order collection, procurement, logistics and production – are optimized using AI and real-time data, while cutting-edge robotics and vision systems ensure high-quality vehicle production.
Hyundai said HMGMA will expand its mixed-model production capabilities and integrate various robot processes to enhance automation, including automated guided vehicles for an optimized logistics system, Boston Dynamics’ robot dog Spot for exterior quality inspection in the weld shop and parking robots in the assembly shop.
Automation in HMGMA’s assembly line is nearly double that of the group’s existing facilities.
A solar parking lot located at the front of the site will generate 5.2 megawatts of energy, accounting for roughly 5% of the Metaplant’s total power consumption.
INVESTMENTS IN ROBOTS, ADVANCED AIR MOBILITY
The group’s investment in Georgia related to HMGMA and joint battery ventures with LG Energy Solution Ltd. and SK On Co. is $12.6 billion.
This represents the largest single investment in the state’s history and includes a total of 8,500 jobs at HMGMA by 2031, according to Hyundai.
The group’s total investments in Georgia are expected to create nearly 40,000 direct and indirect jobs and generate $4.6 billion in individual earnings every year, according to the Center for Automotive Research.
Earlier this week, when Hyundai announced a $21 billion US investment plan through 2028, it said $9 billion would be used to expand HMGMA facilities.
Some $6 billion will be allocated to enhance the group’s parts and logistics business, as well as to establish an advanced steel mill in the US with an annual steel production capacity of 2.7 million tons.
The mill will supply high-quality automotive steel plates to HMGMA when commercial steel production begins in 2029.
An additional $6 billion will be used to drive innovation and expand strategic partnerships with US companies in areas including autonomous driving, robotics, AI and advanced air mobility (AAM).
Through this $21 billion commitment to drive US manufacturing growth, Hyundai expects to create 14,000 new direct full-time jobs in the country by 2028.
The overall economic impact is expected to generate more than 100,000 direct and indirect job opportunities across related industries, it said.
By Bo-Hyung Kim, Jung-Eun Shin and Gil-Sung Yang
kph21c@hankyung.com
In-Soo Nam edited this article.
