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5mo ago

POSCO Joins Hyundai Steel’s $5.8 Billion Louisiana Plant Project

The partnership, formalized through an MOU, deepens collaboration on steel production and rechargeable battery materials to support U.S. automotive and EV markets.

This photo, taken April 21, 2025, and provided by Hyundai Motor Group, shows Hahn Suk‑won (L), executive vice president of the group's corporate planning division, and POSCO Holdings President Lee Ju‑tae posing after signing a memorandum of understanding to partner on Hyundai Steel Co.'s U.S. plant project and related ventures. The ceremony took place at Hyundai Motor's office in Gangnam, southern Seoul. (PHOTO NOT FOR SALE) (Yonhap)
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Steel products are piled up at a port in Pyeongtaek, about 65 kilometers south of Seoul, in this file photo taken Feb. 11, 2025. (Yonhap)

Overview

  • POSCO signed a memorandum of understanding to invest in Hyundai Steel’s $5.8 billion electric arc furnace-based steel mill in Louisiana.
  • The facility, slated for completion by 2029, will produce 2.7 million tons of auto-grade steel annually for U.S. and regional automakers.
  • POSCO and Hyundai will also collaborate on developing materials for rechargeable batteries, aligning with future mobility and EV technology needs.
  • The investment responds to the U.S. administration’s 25% tariffs on steel imports, aiming to secure tariff-exempt supply chains and localized production.
  • POSCO's equity stake in the project is yet to be finalized, with discussions on investment ratios expected to begin soon.