POSCO considers joining Hyundai Steel project in the US

Possible partnership is a response to US steel tariffs

South Korean steelmaker POSCO is considering joining Hyundai Steel’s $5.8 billion project to build a plant in Louisiana (USA). This was reported by Business Korea, citing industry sources.

The possible partnership is a response to the United States’ recent imposition of a 25% duty on imported steel. The plan calls for POSCO to share construction costs in exchange for some steel, potentially reducing the tariff burden for both companies.

Hyundai Motor Group has announced plans to raise half of the 8.5 trillion won (approximately $5.8 billion) investment needed to build the steel plant from Hyundai Steel and external investors, with the rest coming from loans. POSCO, the newspaper notes, has become a key external investor, and negotiations are underway to determine the methods of participation and the amount of investment.

In the past, POSCO has had problems entering the US market. Previous attempts, including plans to build hot and cold rolling mills in Alabama more than a decade ago, were abandoned due to high labor costs. For Hyundai Steel, this partnership could come as a relief in the face of financial pressures and market challenges.

However, the negotiations between the two South Korean companies may be affected by POSCO’s request for a stake in steel production and interest from other global steel giants.

In March 2025, Hyundai Motor Group announced investments in the United States of $21 billion for 2025-2028. They include a steel plant with an electric arc furnace in Louisiana, which will be built by the steel division of Hyundai Steel. Its annual capacity will be 2.7 million tons. The plant will create more than 1.4 thousand jobs and produce next-generation steel to be used in the automotive sector.