Hyundai Builds Automotive Steel Plant in Louisiana

Hyundai-Posco Louisiana Steel (HPLS), a joint venture between South Korean steelmakers Hyundai Steel Company and Posco Group, has begun construction of a new integrated steel mill with an investment of US$5.8 billion in the state of Louisiana.

Described as the first electric arc furnace plant of its kind in the United States, the facility is being built on a 728-hectare site within the RiverPlex MegaPark in Ascension Parish.

HPLS will contribute 50% of the capital, Posco 20%, and automakers Hyundai and Kia 15% each.
The facility will primarily supply low-carbon steel sheets to automakers throughout North America, but particularly to the Hyundai Motor Group (HMG), which is leading the project.

Production is expected to begin in the first quarter of 2029 with an initial capacity of 2.7 million metric tons per year, employing more than 1,300 people directly and another 4,100 indirectly.

HPLS stated that the new plant will help strengthen the resilience of the U.S. manufacturing industry, localize critical supply chains, and support next-generation mobility industries.
By integrating steel production directly into the U.S. automotive ecosystem, HPLS enhances efficiency, reliability, and domestic competitiveness.

The company noted that the new plant will produce high-quality steel with 70% fewer CO2 emissions than conventional blast furnace plants.

Built near the Mississippi River, the plant will have access to a deep-water port, rail connections, and interstate highways, enabling efficient logistics for the inbound flow of raw materials and the outbound distribution of finished steel products throughout North America.

This investment will also help South Korea fulfill its commitment to invest $350 billion in the United States, as part of the U.S.-South Korea trade agreement signed in 2025.

Last year, HMG also committed to investing $26 billion in the United States under a similar agreement.
“This is the first integrated steel mill in the United States dedicated to the production of steel sheets for the automotive industry. The steel products manufactured here will help not only Hyundai Motor Group but also other automakers produce state-of-the-art vehicles,” said HMG Chairman Chung Eui-sun during the groundbreaking ceremony.