Hyundai & POSCO Initiate Construction of $5.8B Louisiana Steel Mill
South Korean industrial powerhouses, Hyundai Steel and POSCO, have commenced construction on a monumental $5.8 billion electric-arc furnace steel mill in Donaldsonville, Louisiana. This marks the first U.S. facility solely dedicated to automotive steel sheet production. The groundbreaking ceremony, held on September 4, 2026, was graced by top executives from Hyundai Motor Group, POSCO, Kia Corporation, and high-ranking officials from the U.S. and South Korean governments.
The facility, a joint venture under HYUNDAI-POSCO Louisiana Steel (HPLS), is set to have an annual production capacity of 2.7 million metric tons of steel. Commercial operations are slated to begin in 2029. The mill will primarily produce hot-rolled and cold-rolled steel sheets for the automotive sector, catering to Hyundai, Kia, and other major U.S. automakers. The project is anticipated to generate 1,300 direct jobs and a total of 5,400 jobs in the region.
This investment is largely perceived as a strategic move in response to the steep U.S. steel import tariffs imposed by the Trump administration, which levied a 50% tariff on foreign steel. Hyundai Motor Group aims to localize its supply chain and mitigate exposure to trade barriers by establishing a domestic production base. Additionally, the plant is expected to reduce carbon emissions by approximately 70%, compared to traditional blast furnace methods, owing to its advanced electric-arc furnace technology.
Source: The Korea Herald – Hyundai Steel Kicks Off $5.8B Louisiana Steel Mill