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19 September 2025

Hyundai Moves Forward With Major Georgia Expansion

The automaker pledges $2.7 billion for its Ellabell plant, creating thousands of jobs and reaffirming commitment to U.S. growth despite a recent immigration raid and diplomatic tensions.

Hyundai Motor Group is charging ahead with a massive expansion of its manufacturing footprint in southeast Georgia, undeterred by a recent immigration raid that cast uncertainty over the future of its operations in the state. On September 18, 2025, the South Korean automaker confirmed it will invest $2.7 billion to boost production capacity at its Ellabell Metaplant by 200,000 vehicles over the next three years, ultimately reaching an annual output of 500,000 vehicles. According to Associated Press, the move is part of Hyundai's most ambitious growth strategy yet, aiming to transform the company into a global leader in electric and hybrid mobility.

The expansion, which was initially unveiled in March 2025, comes amid a broader $5 billion investment in the United States and is expected to create 3,000 new jobs at the Georgia site. The plant will shift its focus toward electrified vehicles, ramping up from the current two hybrid and electric models to a total of ten assembled in Georgia. As CEO José Muñoz described at Hyundai’s first CEO Investor Day outside Korea, held in New York City, "Our 2030 vision is to become a global mobility leader through electrification, new products, and software-driven technology."

The announcement follows a tumultuous period for Hyundai's U.S. operations. Earlier in September, U.S. Immigration and Customs Enforcement (ICE) raided the battery plant construction site adjacent to the main facility, detaining about 475 workers—most of them South Korean nationals. The raid, which led to the detention and deportation of more than 300 individuals, sparked a diplomatic row between Washington and Seoul and delayed the startup of the battery plant by at least two to three months. According to Hyundai CEO José Muñoz, the facility is now expected to open in the first half of 2026, a slight setback from earlier projections.

Despite the disruption, Hyundai officials have repeatedly emphasized their unwavering commitment to Georgia. In an opinion piece published in The Atlanta Journal-Constitution, Brent Stubbs, chief administrative officer of the Ellabell site, wrote, "This situation doesn’t change our plans to continue expanding and localizing in the United States. Our investments in America are part of a long-term strategic plan." Hyundai spokesperson Michael Stewart confirmed that the $2.7 billion investment will go toward expanding capacity at the plant and group affiliates, bringing the total investment in the auto plant to $10.3 billion—excluding the $4.3 billion already earmarked for the battery plant through a joint venture with LG Energy Solution.

State and local governments have sweetened the deal, offering a combined $2.1 billion in tax breaks and incentives to support Hyundai’s expansion. The company and its affiliates currently employ 3,129 people at the Ellabell site, but that number is set to swell to at least 8,500 by the end of 2031. Georgia Governor Brian Kemp, a vocal supporter of the project, expressed confidence in the state’s ability to attract and retain foreign investment despite the recent turbulence. At a ceremony marking the groundbreaking of a separate Rivian Automotive electric vehicle plant, Kemp told reporters, "I’ve had good conversations with companies that are here doing business in Georgia, companies that are looking to do business here, and I’ve had good conversations with people in the White House about the visa issue." He added, "I remain confident Georgia’s business advantages will win out."

The ICE raid, while disruptive, has also highlighted broader issues in U.S. immigration policy and the challenges faced by overseas firms seeking to transfer specialized labor and technical know-how. Didi Caldwell, president and CEO of Global Location Strategies, told Georgia Public Broadcasting that, "There is a need for specialized technicians and engineers that are experienced in these types of operations to be able to come here and transfer that knowledge into the United States. We just don’t have that type of knowledge here in the United States." Caldwell emphasized the importance of cooperation between the U.S. government and foreign companies to facilitate the legal transfer of expertise, saying, "It would be in everyone’s best interest if the U.S. government and these companies could work together to figure out what is the best path to allow that transfer of knowledge that brings a lot of intellectual property and a lot of goodwill to the United States and employs people here in the most efficient and law-abiding way."

Hyundai’s expansion in Georgia is just one piece of a larger global puzzle. The automaker has set its sights on producing 5.6 million vehicles annually by 2030, with 60% of that output consisting of electric or hybrid models targeting markets in South Korea, North America, and Europe. The company also intends to manufacture more than 80% of the vehicles it sells in the U.S. domestically by 2030—up from 60% today. In a significant shift for the U.S. market, Hyundai will introduce a mid-sized pickup truck, adding to its existing Santa Cruz compact pickup, which debuted in 2021.

Internationally, Hyundai is planning a 1.2 million unit increase in production capacity, with 250,000 vehicles slated for Pune, India; 200,000 for Ulsan, South Korea; and another 250,000 for assembly plants in Saudi Arabia, Vietnam, and North Africa. The automaker also reaffirmed its commitment to innovation, announcing plans to launch extended-range electric vehicles with gasoline motors by 2027. These vehicles are expected to deliver more than 600 miles (960 kilometers) of driving range on a single charge, a move that could reshape consumer expectations and the competitive landscape in the EV market.

Financially, Hyundai has adjusted its outlook in response to new U.S. tariffs. The company raised its 2025 revenue growth forecast to 5–6% but trimmed its operating profit margin target to 6–7%. From 2026 to 2030, Hyundai plans to invest KRW 77.3 trillion in research, new production facilities, and advanced technologies to support its ambitious transformation.

Local leaders have welcomed Hyundai’s recommitment to Georgia. Savannah Mayor Van Johnson wrote on social media, "The project will bring new opportunities to our workforce, bolster our infrastructure, and strengthen Savannah’s position as a hub for advanced manufacturing." The investment is widely seen as a boon for the state’s economy and a testament to Georgia’s growing reputation as a magnet for high-tech manufacturing jobs.

While the recent ICE raid exposed the complexities and vulnerabilities of the global supply chain—and the delicate balancing act between immigration policy and economic development—Hyundai’s determination to press forward signals a vote of confidence in Georgia’s workforce, infrastructure, and business climate. As the automaker continues to expand its operations and invest in new technologies, the Peach State looks set to remain at the center of the electric vehicle revolution for years to come.

The coming years will reveal whether Hyundai’s bet on Georgia pays off, but for now, the company’s bold expansion is energizing the region and redefining what’s possible for advanced manufacturing in the American South.