Hyundai Motor Group Executive Chair Chung Euisun speaks during the grand opening of Hyundai Motor Group Metaplant America in Ellabell, Ga., Wednesday. AP-Yonhap

Hyundai Motor Group held a grand opening ceremony for Hyundai Motor Group Metaplant America (HMGMA) in Georgia on Wednesday (local time), aiming to establish it as a key manufacturing pillar for the carmaker's electric vehicles (EVs) and hybrids.

The latest announcement is widely seen as a well-timed commitment to and investment in the United States, coming on the same day that U.S. President Donald Trump decided to impose a 25-percent tariff on cars imported to the country, set to go into effect on April 3.

The much-touted EV-dedicated production line currently has the capacity to manufacture 300,000 vehicles annually, but the carmaker plans to expand it to 500,000 to counter the mounting tariff risks from Trump. If realized, the combined production capacity of HMGMA and the group's two other U.S. plants would reach 1.2 million vehicles per year.

"HMGMA not only represents the group's advanced manufacturing capabilities and commitment to innovation but also our investment in relationships with our partners and communities right here in Georgia," Hyundai Motor Group Executive Chair Chung Euisun said during the opening ceremony.

Prior to the official opening, HMGMA began operations in October 2024 by producing Hyundai's flagship IONIQ 5 EV and has since expanded its production lineup to include a large electric SUV, the IONIQ 9.

The facility will also be used as a base to manufacture not just EVs, but hybrids from Kia and Genesis. The group shared its plan to build the facility for the first time in 2019 and started building the factory in October 2022.

Hyundai Motor Group Executive Chair Chung Euisun, left, poses with Georgia Gov. Brian Kemp during the opening ceremony of the Hyundai Motor Group Metaplant America in Ellabell, Ga., Wednesday (local time). AP-Yonhap

The long-awaited opening of the carmaker's new U.S. plant came two days after Chung met with Trump at the White House on Monday, where he announced the group's $21 billion (31 trillion won) investment plan in the world's largest economy.

The investment focuses on expanding its auto manufacturing capacity there and building an electric arc furnace steel mill in Louisiana for localized production of automotive steel plates.

Georgia Gov. Brian Kemp also joined the opening ceremony for HMGMA, praising the carmaker's contribution to boosting the regional economy by creating more jobs there.

"HMGMA is a once-in-a-generation opportunity, made possible by our commitment to working with job creators to build fruitful partnerships for decades," Kemp said.

Regarding the planned tariff threats, Chung underscored the importance of its partnership with the Korean government in addressing challenges under the Trump administration.

"We, as a company, cannot cast any huge influence on the tariff, as the duty is a matter between one country and another," Chung told reporters after the ceremony. "The (Korean) government should take the initiative in negotiations on the tariff with its U.S. counterpart, and each company will also have to back up the move."

Hyundai Motor and Kia — two major auto affiliates of the group — sold a combined total of 1.71 million vehicles in the U.S. last year. Even if HMGMA operates at full capacity after the planned expansion, hundreds of thousands of vehicles are still subject to face tariffs from the U.S.

Despite the lingering uncertainties, Korea's ongoing leadership vacuum — triggered by President Yoon Suk Yeol's martial law declaration late last year — makes it hard for the government to preemptively respond to Trump's tariff threats.

Industry Minister Ahn Duk-geun held an emergency meeting Thursday to discuss countermeasures against the latest tariff announcement by Trump.

"Korean automakers' exports to the U.S. will face significant difficulties following Trump's imposition of the auto tariff, so the government will closely partner with the industry to come up with countermeasures," he said.