ATLANTA — Hyundai Motor Group has confirmed it will move ahead with a major expansion of its Georgia plant, committing $2.7 billion to increase production capacity, even as fallout continues from a recent immigration raid that sparked diplomatic tensions between the United States and South Korea.

Expansion Plans Move Forward

The company said Thursday that it will increase annual output at its Ellabell facility, west of Savannah, by 200,000 vehicles over the next three years, raising total capacity to 500,000 vehicles per year.

Initially announced in March during the plant’s grand opening, the expansion is part of Hyundai’s broader strategy to scale global production to 5.6 million vehicles annually by 2030, with 60% of those models expected to be electric or hybrid.

The Georgia site is slated to play a central role. Hyundai confirmed it will produce 10 models of electric and hybrid vehicles in the state, up from the two currently assembled, and introduce a mid-sized pickup truck tailored for the U.S. market — the first of its kind in the company’s domestic lineup.

Fallout from Immigration Raid

The announcement comes just weeks after a federal immigration raid disrupted operations at the site. Authorities detained more than 300 South Korean citizens, prompting delays at Hyundai’s nearby EV battery plant and igniting a diplomatic dispute between Seoul and Washington.

Hyundai CEO José Muñoz previously said the raid would delay the battery plant’s launch by up to three months. Spokesperson Michael Stewart confirmed Thursday that the facility, developed in partnership with LG Energy Solution, is now expected to open in the first half of 2026.

Georgia officials, including Governor Brian Kemp, have since sought to reassure investors. Speaking at the groundbreaking of a separate Rivian EV plant earlier this week, Kemp expressed confidence that the state’s economic climate remains attractive and suggested the raid could ultimately streamline visa approvals for South Korean specialists.

Long-Term Commitment to U.S. Market

Hyundai has emphasized that its long-term U.S. strategy remains unchanged. Brent Stubbs, chief administrative officer of the Ellabell site, wrote in the Atlanta Journal-Constitution that the company remains committed to Georgia, describing the raid as a setback but not a deterrent.

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

Hyundai and LG Energy Solution have pledged $12.6 billion in combined investments at the Georgia site, with a promise to hire at least 8,500 workers by 2031. State and local governments have offered $2.1 billion in incentives, one of the largest packages in Georgia’s history.

Global Expansion Strategy

The Ellabell expansion is the largest element of Hyundai’s global plan to raise production by 1.2 million vehicles a year. Additional increases include:

• 250,000 vehicles from Pune, India

• 200,000 vehicles from Hyundai’s EV plant in Ulsan, South Korea

• Parts for assembly into 250,000 more vehicles at plants in Saudi Arabia, Vietnam, and North Africa

The company also reiterated plans to deepen investments in robotics and launch extended-range EVs by 2027, pairing gasoline engines with batteries to achieve a range of more than 600 miles (960 kilometers).

Looking Ahead

Despite the turbulence caused by the immigration raid, Hyundai’s latest commitment underscores its confidence in Georgia as a cornerstone of its North American strategy. With billions invested, thousands of jobs pledged, and a stronger push into EVs, the company is betting on the U.S. market to anchor its global transformation.