Hyundai Steel breaks ground in Louisiana for $8 trillion low-carbon auto-steel bet

Hyundai Motor Group is putting 8 trillion won behind a U.S. steelmaking project that it says will position the group for the low-carbon automotive steel market. Hyundai Steel broke ground on an electric-arc-furnace mill in Donaldsonville, Louisiana, marking its first step toward establishing a local production base.

The project is designed to supply environmentally friendly automotive steel to Hyundai and Kia plants in the United States, as well as to local automakers. Production is scheduled to begin in the first quarter of 2029.

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We will be able to cover the roughly 10 million tonnes of low-carbon steel that the United States imports each year through local production.

At the groundbreaking ceremony, Hyundai Motor Group Chairman Chung Euisun said local output could cover the roughly 10 million tonnes of low-carbon steel imported by the United States each year. He added that lower tariffs on Korean steel were not the project’s goal, although local production could benefit both sides by removing the burden of high U.S. tariffs on Korean steel.

For Hyundai Steel, the Louisiana mill represents the group’s first major U.S. investment in steel production and a push to secure a position in a market tied to cleaner vehicles.

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Reducing tariffs was not the goal, but I think there are benefits for both sides.