Hyundai Motor Group is considering building its first overseas steel mill in New Orleans, Louisiana, to shield itself from potential protectionist policies under Donald Trump’s second term, according to industry sources. The South Korean automotive giant, which includes Hyundai Steel Co. and Kia Corp., has allocated around 10 trillion won (USD 7 billion) for the facility. This investment aligns with the production growth at its electric vehicle assembly lines, Hyundai Motor Group Metaplant America LLC (HMGMA), in Georgia, which began operations last year.
The group is evaluating locations in Texas, Georgia, and Louisiana, with New Orleans emerging as the leading candidate. While Hyundai officials confirmed they are “reviewing” the US steel mill project, they did not provide further details. The plant’s construction could begin as early as spring 2026, with completion expected by 2029.
The new steel mill will supply Hyundai’s assembly lines in Alabama and Kia’s plant in Georgia, along with HMGMA, which has an annual production capacity of 300,000 to 500,000 units. The Alabama and Georgia plants have capacities of 330,000 and 350,000 units, respectively. The US facility is expected to produce several mln tons of steel sheet annually, contributing to Hyundai Steel’s total output, which reached 18.69 mln tons in 2024, including 5 mln tons of automotive steel plates.
The plant will likely use direct reduction technology, emitting less carbon than traditional blast furnace methods, potentially aiding in securing US approval for steel production. This move is seen as a strategy to mitigate risks from US trade policies, lower logistics costs, and ensure more of Hyundai’s vehicles qualify for US tax credits amid growing protectionism. Hyundai Steel aims to increase its supply to external automakers, targeting 40pct of its output for companies outside the Hyundai Motor Group, aspiring to become one of the world’s top three automotive steelmakers. Currently, 17pct of its products are delivered to foreign carmakers.
