Construction of Hyundai Steel's U.S. steel plant has finally begun. The plan is to expand supply channels for high-value-added steel products not only to group companies like Hyundai and Kia but also to the U.S. automotive industry and advanced industries such as robots and rockets.
On the 4th (local time), a groundbreaking ceremony for 'Hyundai Steel-POSCO Louisiana Electric Arc Furnace Steel Plant' (HYUNDAI-POSCO Louisiana Steel, HPLS) was held in Donaldsonville, Louisiana, USA. HPLS is the first electric arc furnace-based automotive steel sheet plant in the U.S., with a total investment of $5.8 billion (approximately 8 trillion won). Led by Hyundai Motor Group (Hyundai Steel: 50%, Hyundai Motor: 15%, Kia: 15%) and supported by POSCO (20%), construction is scheduled to begin in the fourth quarter of this year, with operations starting in Yangsan in 2029. It will serve as a forward base capable of fully responding to U.S. steel tariffs (50%).
At the groundbreaking ceremony, Chung Eui-sun, Chairman of Hyundai Motor Group, stated, "This is our company's first integrated steel plant dedicated exclusively to automotive steel sheets." He added, "Hyundai Motor Group, along with U.S. automotive companies, will play a major role in producing next-generation mobility." Hyundai Motor Group's ambition has extended beyond the 'automotive' category. Jeong (Chairman) emphasized, "Steel produced at HPLS should naturally be applied to Boston Dynamics' humanoid robot 'Atlas.' I hope we can work even harder in the future to supply this steel to rockets from companies like SpaceX as well."
Notably, HPLS is designed to produce high-value-added products while reducing carbon emissions by 70–80% compared to blast furnaces by utilizing electric arc furnaces. Jung In-hwa, Chairman of POSCO Group, evaluated that "if Hyundai Motor cooperates with HPLS, it can become a company with the world's highest competitiveness."
in INDUSTRY
