South Korean steelmakers Hyundai Steel and POSCO have begun construction of a $5.8bn steelworks in Louisiana, in a major investment that will strengthen the domestic steel supply chain for US manufacturing.
The Hyundai-POSCO Louisiana Steel (HPLS) facility is expected to begin production in 2029, with annual capacity of 2.7 million tonnes of hot-rolled, cold-rolled and galvanised steel.
Around 1.8 million tonnes of the output will be automotive steel, with the remaining 900,000 tonnes available for wider industrial applications.
The investment
The investment will help Hyundai Motor and Kia source more of the steel needed for their US vehicle manufacturing operations locally, reducing reliance on overseas supply and creating a closer link between steel production and automotive manufacturing.
Hyundai Steel expects the plant to generate around $4bn in annual revenue once operating at full capacity. Hyundai Motor and Kia are each expected to purchase around 400,000 tonnes of steel annually, while POSCO plans to take approximately 600,000 tonnes.
The project is being developed by Hyundai Steel, POSCO, Hyundai Motor and Kia, giving the facility an established customer base before production begins.
Benefits for US manufacturing
For US manufacturers, the investment adds significant new domestic steelmaking capacity at a time when supply chain resilience and access to critical materials remain major priorities.
The plant will also use direct reduced iron (DRI) and electric arc furnace (EAF) technologies. Hyundai Steel expects this combination to reduce carbon emissions by around 70% compared with traditional blast furnace production.
The company is also considering hydrogen as a longer-term fuel source.
Major equipment suppliers have already been appointed, with Danieli and Tenova supplying DRI and steelmaking equipment, SMS Group providing rolling mills and Fives Group delivering steel coil finishing lines.
The project represents a significant expansion of US manufacturing infrastructure, connecting domestic steel production with vehicle manufacturing and supporting a more integrated North American industrial supply chain.
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