Wednesday, August 20, 2025

Hyundai built its newest factory around AI-powered technology like robotics and digital twins

Hyundai car in assembly line
  • Hyundai's Georgia EV and hybrid plant has AI-powered robots, drones, and quality-control systems.
  • The technology helps to manage inventory, final inspections, and the parking of finished vehicles.
  • This article is part of "How AI Is Changing Everything: Supply Chain," a series on innovations in logistics.

At America's largest car manufacturing plant, nearly everything is powered by AI.

Drones buzz and scan stacked pallets to inventory parts. Robotic arms swivel through their programmed arcs. Cameras direct sanding tools to paint blemishes. Uncrewed taxis move vehicles and parts to their next manufacturing destination. A four-legged Boston Dynamics AI dog named Spot walks through the facility and scans components to ensure they're snapped into place.

The facility, called Hyundai Motor Group Metaplant America, is roughly equivalent to 278 football fields and comes with a nearly $7.6 billion price tag, according to the company.

The HMGMA facility, which celebrated its grand opening in March, puts Hyundai in a unique position compared to other automakers. While most US automakers are retrofitting decade-old plants with AI and robotics, Hyundai built HMGMA from the ground up with AI, Nvidia chips, and robotics at its core. Each vehicle built in the plant — including cars in all three of Hyundai Motor Group's brands — runs through at least 23 AI-based or robotic systems before it's finalized, according to Hyundai.

Industry analysts told Business Insider that Hyundai's AI-first approach could be a boon for navigating policy changes and customer trends that impact the carmaker's bottom line. The technology can help improve quality control measures and reduce manufacturing costs in ways that traditional manufacturing can't match.

"Hyundai's integration of humanoid robots and such sets a new benchmark for smart manufacturing," Erin Keating, an executive analyst at Cox Automotive, told Business Insider. "Potentially, there are cost savings, and it likely offers the ability for Hyundai and others to respond faster to any industrial disruption."

AI isn't replacing Hyundai's workforce

At the center of Hyundai's Georgia operation is an integrated digital command hub that acts as a digital twin, or a computer simulation that mirrors the physical plant in real time, said Miles Johnson, Hyundai's communications representative for its electric-powered Ioniq-brand vehicles and tech.

Sensors collect data from across the production floor, then an AI algorithm creates a virtual replica of each step in the real-life manufacturing process.

"AI can play a significant role in predicting optimized outcomes and identifying root causes of production issues," Johnson told Business Insider. "If a quality issue arises in production, the AI system can search past data it has been trained on to identify the likely cause and suggest a corrective action plan."

Keating said that Hyundai's AI can help "detect defects in real time, analyze root causes, and suggest corrective actions that can significantly reduce rework, scrap, and warranty claims."

The brand's two retro-modern electric vehicles, the Ioniq 5 and Ioniq 9 SUVs, are built with these highly technical processes. The plant will eventually serve Hyundai's other brands as well; Kia production is set to begin in 2026, with Genesis vehicles planned for an unspecified future date.

In a press release, Hyundai said that the AI and robotics systems will assist humans, who will remain in charge of on-the-ground robotics maintenance, data analysis, and parts installation.

Hundreds of roles now involve programming the factory's 850 robots, troubleshooting AI, or interpreting production data rather than performing repetitive physical tasks. The company aims to hire 8,500 employees at HMGMA by 2031 and has dubbed the project the largest single business investment in Georgia's history.

In March, Hyundai said it had already hired 1,000 full-time staff members at the plant. The company also built a nearby Hyundai Mobility Training Center of Georgia, where it plans to train a pipeline of college-level talent for the plant. The program, which is in coordination with three local technical colleges, is expected to open this year.

AI could help carmakers with cost management and supply-chain disruptions

Hyundai's massive AI investment faces significant challenges in the current automotive market. Both the Ioniq 5 and Ioniq 9 were positioned to benefit from the then-President Joe Biden's Inflation Reduction Act. The cars are both eligible for the $7,500 tax credits for EVs assembled in American plants.

But Americans' uptake of EVs has underperformed analysts' predictions since Hyundai broke ground on HMGMA in October 2022. Now, EV adoption is facing more federal pushback as subsidies for EVs are set to end in September.

Hyundai is now betting that its EVs, including the three-row Ioniq 9, which launched in May 2025, will attract buyers without the need for tax incentives. However, some industry analysts say that Hyundai's AI-powered manufacturing can still work, even if it currently relies on EV sales.

AI's advantages — like real-time quality control and faster problem solving — could prove crucial as automakers face pressure from increasingly cheap Chinese vehicles and ongoing supply chain volatility. Morningstar analyst David Whiston said that companies adopting AI for manufacturing and logistics are better positioned to manage costs and respond to disruptions.

"Automakers leveraging AI for smart factories, autonomous logistics, and predictive analytics will be better positioned to scale production efficiently and meet regulatory and consumer demands faster," Keating said. "AI and robotics are becoming non-negotiable for competitiveness."

Read the original article on Business Insider


from All Content from Business Insider https://www.businessinsider.com/hyundai-ai-powered-factory-smart-metaplant-america-2025-8
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