Hyundai says it will spend $2.7 billion expanding the Georgia plant raided by ICE

ATLANTA (AP) — Hyundai Motor Group on Thursday confirmed it is going forward with previously announced plans to expand its Georgia plant, just weeks after an immigration raid delayed the startup of an electric vehicle battery plant at the site.

As part of a broader investment strategy, Hyundai said it would spend $2.7 billion to increase production capacity at the Ellabell site by 200,000 over the next three years, to a total of 500,000 vehicles a year.

The company first announced the expansion in March at the grand opening of the plant west of Savannah, and had said in August that it would invest an additional $5 billion in United States overall. But the raid, which included arrests of more than 300 South Korean citizens, led to questions about the wisdom of the Asian nation investing in the U.S..

The company said it now plans to produce 10 models of electric and hybrid gas-electric vehicles in Georgia, up from the current two the plant has been assembling as it ramps up production. Hyundai says it’s still on track to expand production worldwide to 5.6 million vehicles a year by 2030. The automaker pledged that 60% of those vehicles will be electric or hybrid powered, targeting sales in South Korea, North America and Europe.

Hyundai said that it plans to make more than 80% of vehicles sold in the United States domestically by 2030, with total domestic content increasing from 60% to 80%. For the first time, the vehicles would include a mid-sized pickup truck, a key vehicle class in the U.S. market. The company already makes the Santa Cruz model, a four-door compact pickup, that it started selling in 2021.

Hyundai CEO José Muñoz has said the immigration raid will delay opening the battery plant by at least two to three months. Spokesperson Michael Stewart said Thursday that the facility will open in the first half of 2026.

Both Hyundai executives and Georgia officials have been trying to calm the situation since the raid, which mushroomed into a diplomatic dispute between South Korea and the United States.

Republican Gov. Brian Kemp told reporters Tuesday at a ceremony marking the groundbreaking of a Rivian Automotive electric vehicle plant that he remains confident Georgia’s business advantages would “win out” in terms of foreign investment. The raid may even wind up smoothing the way for South Korean employees to more easily obtain legal permission to help build and operate facilities in the United States, he said.

“I’ve had good conversations with companies that are here doing business in Georgia, companies that are looking to do business here,” Kemp said. “And I’ve had good conversations with people in the White House about the visa issue.”

Brent Stubbs, the chief administrative officer of the Ellabell site, wrote in an opinion piece published Wednesday in The Atlanta Journal-Constitution that the company is still committed to Georgia.

“This situation doesn’t change our plans to continue expanding and localizing in the United States,” Stubbs wrote. “Our investments in America are part of a long-term strategic plan.”

The $2.7 billion investment confirmed Thursday will go to expanding capacity at the plant and group affiliates, Stewart said. Hyundai and its onsite affiliates currently have 3,129 employees in Ellabell, he said.

Hyundai and its joint-venture partner in the battery plant, LG Energy Solution, had previously announced $12.6 billion of investments at the Georgia site, with pledges to hire at least 8,500 workers by the end of 2031. State and local governments have promised $2.1 billion in tax breaks and other incentives.

The boost at the Ellabell site is the biggest part Hyundai’s plan to raise production by 1.2 million vehicles a year worldwide. That includes another 250,000 vehicles out of Pune, India; and 200,000 more at Hyundai’s electric vehicle plant in Ulsan, South Korea. The automaker said it would also deliver parts for assembly into an additional 250,000 vehicles at plants in Saudi Arabia, Vietnam and North Africa.

Hyundai underlined a previous announcement to deepen its investment in robotics and said that by 2027 it would launch extended-range electric vehicles with gasoline motors to extend the range of its electric batteries to more than 600 miles (960 kilometers).