Webpack: How do I replace <use> tag with actual svg data?

Question

My index.html uses a svg in this way:

<button class="button--settings" id="button_settings">
    <svg role="img">
        <use href="assets/images/icons.svg#settings-icon"></use>
    </svg>
</button>

I'm using Webpack to bundle my project. I need to have the svg inline in the compiled index.html. So <use href="assets/images/icons.svg#settings-icon"></use> should be replaced with the actual svg data. How do I achieve this?

This is my current webpack.config setup:

const path = require('path');
const HtmlWebpackPlugin = require('html-webpack-plugin');
const { CleanWebpackPlugin } = require('clean-webpack-plugin');
const TerserPlugin = require('terser-webpack-plugin');

module.exports = {
    entry: './src/scripts/index.ts', // Entry point of your application
    devtool: 'inline-source-map',
    output: {
        filename: 'scripts/[name].bundle.js', // Output bundle file name
        path: path.resolve(__dirname, 'dist'), // Output directory
        clean: true,
    },
    module: {
        rules: [
            {
                test: /\.ts$/,
                use: 'ts-loader',
                exclude: /node_modules/,
            },
            {
                test: /\.css$/,
                use: ['style-loader', 'css-loader'],
            },
            {
                test: /\.svg$/,
                type: 'asset/resource',
                generator: {
                    filename: 'assets/images/[name][ext]',
                },
            },
            {
                test: /\.(woff|woff2|eot|ttf|otf)$/,
                type: 'asset/resource',
                generator: {
                    filename: 'assets/fonts/[name][ext]',
                },
            },
            {
                test: /\.html$/,
                use: 'html-loader',
            },
        ],
    },
    resolve: {
        extensions: ['.ts', '.js'],
    },
    optimization: {
        minimize: true,
        minimizer: [
            new TerserPlugin({
                terserOptions: {
                    format: {
                        comments: false, // Remove comments
                    },
                },
                extractComments: false, // Disable extracting comments into a separate file
            }),
        ],
    },
    plugins: [
        new CleanWebpackPlugin(),
        new HtmlWebpackPlugin({
            template: './public/index.html', // Template HTML file
            filename: 'index.html', // Output HTML file name
        }),
    ],
};

I'm already researching for 4 hours now but I can't make it work.