Hyundai Motor Group’s massive $21 billion investment plan in the United States has triggered intense interest from global investment banks and private equity firms eager to participate in potential financing arrangements. The Korean automaker announced the investment during Chairman Chung Eui-sun’s March meeting with President Donald Trump at the White House, with plans spanning automobile production, parts, logistics, steel, and future industries through 2028.
Despite Hyundai’s substantial cash reserves of approximately 37.4 trillion won ($25.5 billion) across its key affiliates, financial industry sources indicate the company may tap external funding channels during the infrastructure building process. The investment includes a $5.8 billion steel plant in Louisiana that will produce 2.7 million metric tons annually and create over 1,300 jobs to supply Hyundai’s EV plants in Georgia and Alabama.
Major infrastructure funds including Blackstone, KKR, and Brookfield are conducting independent analyses of Hyundai’s financial position, with Apollo also showing interest as a potential financial partner. A Korean representative from a US private equity fund noted that global companies increasingly prefer not to fully own fixed assets like factories, instead liquidating them to raise capital for R&D and future industries.
Global investment banks including JPMorgan, Morgan Stanley, and Goldman Sachs are maintaining discussions with Hyundai through various channels. One foreign IB executive suggested Hyundai could easily secure 40-45% of total costs through external financing while optimizing use of equity capital.
The investment comes as Trump has implemented tariffs on steel and aluminum imports and threatened additional vehicle import tariffs, with the president stating during the announcement that “this investment is a clear demonstration that tariffs very strongly work.”
