$8 billion state-of-the-art factory redefines Korean auto giant's US strategy amid EV, tariff shifts
ELLABELL, Georgia -- Hyundai Motor Group on Wednesday held the grand opening ceremony of Hyundai Motor Group Metaplant America, an $8 billion cutting-edge automotive manufacturing plant in Bryan County, Georgia, signifying the Korean auto giant’s local expansion bid to counter the second Trump administration’s strict tariff polices.
“Our unwavering belief in this community and in strengthening the American auto sector is what inspired Hyundai’s plans for Metaplant from the start,” said Hyundai Motor Group Executive Chair Chung Euisun during the event held at the 11.76 million-square-meter site in Ellabell.
“In 2019, it was also what inspired our biggest investment ever in the United States: $20 billion. Two days ago, it was my great honor to go to the White House and, right alongside President Trump and his team, announce a new and even bigger investment: a historic $21 billion to support and expand our operations, here in Georgia and in other parts of this country.”
Hyundai Motor highlighted that HMGMA is a software-defined factory that embodies the innovation of manufacturing through autonomous technologies, artificial intelligence, data analytics and robotics.
HMGMA began rolling out the Ioniq 5, Hyundai Motor’s electric sport utility vehicle, in October last year, about two years after the groundbreaking ceremony took place in October 2022. It proceeded to start producing the Ioniq 9, Hyundai’s flagship three-row electric SUV, in March this year.
According to Hyundai, HMGMA plans to expand its production lineup to models of its sister affiliate Kia next year and its premium brand Genesis later on. The Korean automaker’s newest plant will also manufacture hybrid vehicles to accomodate the EV transition period. The Korean automaker plans to increase the annual production capacity of HMGMA to 500,000 units from the current 300,000 units.
Song Ho-sung, CEO of Hyundai's sister affiliate Kia, told reporters that his company's vehicles will eventually take up 40 percent of the total production at HMGMA, with the first model slated to be on the assembly line about halfway into next year, without disclosing which vehicle will be the first to be rolled out there.
Hyundai Motor Group Vice Chair Chang Jae-hoon said HMGMA has set up the assembly lines so that it can produce up to eight different models at the same time, adding that Hyundai Motor and Kia aim to increase their current market share of about 11 percent and expand their presence in the US.
Hyundai, Kia and the former's premium brand Genesis combined for a record-setting 1.71 million vehicles sold in the US last year. On the back of the additional production capacity in America, Chang explained that the auto conglomerate plans to ramp up its proportion of US production to approximately 44 percent from the current 36 percent.
Massive auto cluster
Hyundai Motor Group’s four other affiliates -- Hyundai Mobis, Hyundai Glovis, Hyundai Steel and Hyundai Transys -- have also set up their plants at HMGMA to establish a gigantic auto cluster in the southern part of the US.
There, Hyundai Mobis has built its largest overseas production facility capable of supplying battery systems and parts modules sufficient to equip 300,000 cars per year.
Hyundai Glovis operates a consolidation center and vehicle processing center as the logistics unit of HMGMA, using drones and data analytics to predict demand for parts and check inventory in real time.
Hyundai Steel runs a steel service center to supply enough high-strength steel sheets and plates to assemble 200,000 cars per year, with plans to double the supply capacity in the future.
Hyundai Transys has built a plant with capacity to supply vehicle seats and their frames for 420,000 cars per year.
Hyundai Motor is also constructing a $4.3 billion EV battery cell plant at HMGMA through a joint venture with Korean battery manufacturer LG Energy Solution. The battery plant, with an annual capacity of 30 gigawatt-hours, is expected to be completed next year, aiming to secure battery supply sufficient to power about 360,000 Ioniq 5s annually.
According to Hyundai, the establishment of HMGMA has resulted in a total of 17 Korean partners either newly entering Georgia or expanding their presence to secure new contracts and strengthen their global competitiveness.
Hyundai and Kia have been operating manufacturing plants in Alabama and Georgia since 2005 and 2010, respectively. The former is capable of producing up to 400,000 cars per year while the latter’s annual production capacity stands at 350,000 units. With the addition of HMGMA, the Korean auto conglomerate has secured a yearly production capacity of 1 million vehicles in the US.
hwkan@heraldcorp.com
