Hankook & Co. Group plans to more than double its U.S. production of automotive tires and batteries as it braces for potential tariffs under the Trump administration.
Chairman Cho Hyun-bum has ordered a comprehensive review of the company’s global strategies, specifically citing concerns about a possible 25% tariff on automobiles and parts, according to a company statement Wednesday.
The South Korean manufacturer will expand annual production capacity at its Tennessee tire plant from 5.5 million to 12 million units by the first half of 2026. The expansion represents a $1.57 billion investment over a four-year period ending next year.
The company is also set to double production of lead-acid batteries at its Tennessee facility from the current 1.5 million units annually, with plans to increase premium AGM battery production to 5 million units by 2030.
Hankook’s North American exports have already jumped approximately 20% compared to last year as the company strengthens its distribution channels across the region.
The tire maker is emphasizing high-performance products to capitalize on growing demand from electric vehicles and large SUVs while implementing a price monitoring system to respond to market changes and exchange rate fluctuations.
Lead-acid batteries accounted for about 70% of Hankook & Co.’s total sales last year, driving the group to record financial performance.
