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Hyundai Doubles Down on Georgia Plant Expansion Despite ICE Raid Fallout
Hyundai Motor Group reaffirmed its commitment to expanding its Georgia plant on Thursday, pushing forward with a $2.7 billion investment despite the recent immigration raid that shook the site and strained US-South Korean relations. This investment will boost production capacity at the Ellabell facility by 200,000 vehicles over the next three years, bringing the total to 500,000 annually.
The expansion, initially announced in March, is part of a larger $5 billion US investment strategy revealed by Hyundai in August. However, the recent ICE raid, resulting in the arrests of over 300 South Korean citizens, raised concerns about the future of such investments.
Undeterred, Hyundai plans to produce ten electric and hybrid models in Georgia, a significant increase from the current two. The company remains focused on its global goal of producing 5.6 million vehicles annually by 2030, with 60% being electric or hybrid, primarily targeting South Korea, North America, and Europe. Hyundai aims to manufacture 80% of US-sold vehicles domestically by 2030, increasing domestic content from 60% to 80% and adding a mid-sized pickup truck to its lineup.
While the raid has delayed the opening of Hyundai’s battery plant by several months, CEO José Muñoz and Georgia officials have worked to mitigate the diplomatic fallout. The plant is now expected to open in the first half of 2026. Georgia Governor Brian Kemp expressed confidence in the state’s attractive business environment and hinted at potential improvements to visa processes for South Korean workers.
Hyundai remains committed to Georgia, viewing its US investments as part of a long-term strategy. The $2.7 billion will expand the Ellabell plant and support affiliated operations, which currently employ over 3,100 people. Combined with its partner LG Energy Solution, Hyundai has pledged $12.6 billion in investments at the Georgia site, with plans to create at least 8,500 jobs by 2031, supported by $2.1 billion in state and local incentives.
This Georgia expansion is central to Hyundai’s global production increase of 1.2 million vehicles annually, including increased output in India and South Korea, and parts for an additional 250,000 vehicles assembled in Saudi Arabia, Vietnam, and North Africa. The company also highlighted its ongoing investment in robotics and plans to launch extended-range electric vehicles with a range exceeding 600 miles by 2027.