Hyundai Steel, POSCO, Hyundai Motor Company and Kia Corporation have held a groundbreaking ceremony for a USD 5.8 bln electric arc furnace (EAF)-based integrated steel mill in Louisiana, marking Hyundai Steel’s first steel production base in North America.
The facility, to be operated by Hyundai-POSCO Louisiana Steel LLC (HPLS), will have annual production capacity of 2.7 mln tons of hot-rolled and cold-rolled steel sheets, mainly for automotive applications. Commercial production is targeted for the first quarter of 2029.
Hyundai Steel will hold a 50pct stake in the joint venture, while POSCO will own 20pct and Hyundai Motor and Kia 15pct each.
The mill will use EAF technology, melting scrap steel with electric power, supplemented by direct reduced iron (DRI) to support production of higher-quality steel grades. The partners said the facility will benefit from access to US natural gas and its location near the Mississippi River, supporting transportation to automotive manufacturing facilities by rail and sea.
The project will strengthen Hyundai Motor Group’s local steel supply chain and support its US manufacturing operations. Around 800,000 tons annually is expected to be supplied to Hyundai and Kia’s US plants, while POSCO is expected to allocate part of the output to its existing US customers and Mexican operations.
The investment also brings together Hyundai Steel and POSCO, which are domestic competitors but are cooperating in the US to expand localized steel production and strengthen their position amid higher US steel tariffs and tighter local-content requirements.
The Louisiana project forms part of Hyundai Motor Group’s broader USD 26 bln US investment commitment through 2028, covering automotive production, steelmaking, robotics and other manufacturing activities.