Hyundai Motor Group is making significant strides in expanding its manufacturing capabilities in the U.S. by building a $5.8 billion electric arc furnace steel mill in Louisiana. This facility, a collaboration with POSCO, aims to bolster a local supply chain that caters not only to the automotive sector but also to industries such as robotics, aerospace, and AI.
During the groundbreaking ceremony, Executive Chair Chung Euisun highlighted the strategic shift from shielding Hyundai’s operations from tariffs on imported steel to establishing a robust production hub. The mill is expected to start producing steel by early 2029, providing materials for automotive sheets, humanoid robots, AI data centers, and aerospace applications.
Chung emphasized that this mill, HPLS, will be the first dedicated automotive steel sheet plant in the U.S. using electric arc furnace technology. It aims to produce high-quality, low-carbon steel that supports next-generation mobility, further aligning with Hyundai Motor Group’s broader U.S. investment plan that totals $26 billion.
The facility is projected to produce 2.7 million tons of steel each year, including 1.8 million tons dedicated to automotive production. Hyundai Motor Group will hold an 80% stake in the project, while POSCO will own the remaining 20%. Louisiana Governor Jeff Landry expressed support by highlighting the economic benefits and job creation this investment will bring to the local community.
