Hyundai Steel is set to begin construction of an automotive steel plant in the US in September

The $5.8 billion project is scheduled to come on stream in 2029

In early September, the South Korean company Hyundai Steel (a subsidiary of car manufacturers Hyundai Motor and Kia) will hold a groundbreaking ceremony at the construction site of a new integrated steelworks with electric arc furnaces in the state of Louisiana (USA). This will mark the start of the main construction phase of the project, with investment estimated at $5.8 billion, according to SteelOrbis.

The project is being carried out jointly by Hyundai Steel and POSCO. The plant, with an annual capacity of 2.8 million tonnes, will be located in the RiverPlex MegaPark industrial park (Ascension Parish, Louisiana). The plant is scheduled to come on stream in 2029.

The plant will produce low-carbon, high-tech automotive steel with high added value for the needs of Hyundai Motor Group’s plants in the US, as well as for other North American car manufacturers.

The partners have already selected key equipment suppliers for the future plant:

1. Danieli and Tenova will supply direct reduction units and steelmaking equipment.
2. SMS Group will be responsible for the rolling mills.
3. Fives Group will supply the coil finishing lines.

As reported by GMK Center, in early 2025 Hyundai Steel began exploring the possibility of building a steelworks in the US that would use electric arc furnaces. These plans emerged against a backdrop of expectations that US President Donald Trump would tighten protectionist trade policies, including the potential imposition of tariffs on imports from Mexico and Canada. Hyundai Motor and Kia manufacture cars at plants in Alabama and Georgia (US), as well as in Monterrey (Mexico).