Hyundai Invests About $450 Million in Alabama Plant for Engines and EREV Production

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Hyundai Motor Manufacturing Alabama (HMMA) has announced a series of investments totalling about $450 million at its Montgomery plant. The money supports future vehicle production, expands engine manufacturing and advances next-generation propulsion.

With this package, Hyundai’s total investment in HMMA reaches nearly $2.2 billion since production began in 2005. Hyundai Motor Company President and CEO José Muñoz first announced the investments earlier, and they form part of the group’s $26 billion U.S. commitment for 2025 to 2028.

Engines for Hybrids and EREVs

The package adds engine production capability and supports Extended Range Electric Vehicle (EREV) technology. Hyundai says the enhancements to HMMA’s powertrain operations will allow additional engine variants, including hybrid-electric and EREV applications. The company says this will increase manufacturing flexibility and position the plant to meet changing customer demand.

Preparing for the Tucson and Santa Fe

HMMA is preparing to build the all-new Hyundai Tucson, with production set to begin before the end of 2026, along with the refreshed Santa Fe. The investment includes new equipment, tooling and manufacturing infrastructure for both programmes.

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HMMA President and CEO Mark Rader said the investments strengthen the plant’s capabilities and keep it a cornerstone of Hyundai’s North American manufacturing for years to come. He pointed to the skill of the team and the support of state and local partners in making HMMA one of the most productive automotive plants in North America.

Alabama and Korea Mark the Moment

The announcement took place at a special event at HMMA attended by Alabama Governor Kay Ivey, Ambassador Kyung-wha Kang of the Republic of Korea, Alabama Department of Commerce Secretary Ellen McNair, Hyundai leaders and community partners.

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Ivey praised the 24-year partnership and said the investment would strengthen it. Kang called the plant an example of the Korea-U.S. alliance and said the investment deepens ties between the two countries’ automotive industries. Hyundai says the investments will generate economic benefits across Alabama’s automotive industry and supply chain.