The new project in Louisiana, with an annual capacity of 2.7 million tonnes, will begin production in 2029 and is part of Hyundai Motor Group’s $26 billion plan to expand its investments in the United States.
Hyundai Steel has taken a new step in expanding its presence in the North American market by holding a groundbreaking ceremony for an integrated electric arc furnace (EAF)-based steel plant in Louisiana. The project involves an investment of $5.8 billion and is set to become one of the most significant new investments in the steel supply chain of the U.S. automotive industry.
The groundbreaking ceremony was held on September 4, 2026, under the slogan “Building the Future of Steel, Together with Louisiana,” at RiverPlex MegaPark in Ascension Parish. The new plant will be operated by HYUNDAI-POSCO Louisiana Steel LLC (HPLS), a joint venture between Hyundai Steel, POSCO, Hyundai Motor, and Kia.
The plant will be Hyundai Steel’s first steel production base in North America, as well as the company’s first overseas steelmaking site. According to the plan, commercial production at the facility will begin in 2029, with an annual capacity of 2.7 million tonnes of hot- and cold-rolled steel products, primarily for the automotive industry.
Low-Carbon Steel at the Heart of the U.S. Automotive Supply Chain
The facility will utilize electric arc furnace technology and a direct reduction process, and according to Hyundai Steel, this method will reduce carbon dioxide emissions by up to approximately 70 percent compared with conventional blast furnace-based production routes.
The project aims to create a more localized and resilient supply chain for the steel required by the U.S. automotive industry. In addition to meeting the needs of Hyundai Motor and Kia, the steel produced at the plant will also be supplied to other automakers operating in the U.S. market.
The project will support a total of 5,400 jobs, including 1,300 direct and 4,100 indirect jobs.
Part of Hyundai’s $26 Billion Investment Plan in the United States
The Louisiana steel plant project is one of the key pillars of Hyundai Motor Group’s $26 billion investment plan in the United States through 2028. Announced in 2025, the plan covers sectors ranging from vehicle manufacturing and steelmaking to robotics and other key technologies.
Since entering the U.S. market in 1986, Hyundai Motor Group has invested more than $20.5 billion in the country and has also expanded its production network in recent years across automobiles, batteries, components, and logistics.
The HPLS project now extends this presence upstream in the automotive value chain, where steel, as one of the most important raw materials in vehicle manufacturing, will be supplied closer to end markets and production centers.
By bringing steel production closer to the Hyundai and Kia automotive operations in the United States, Hyundai Motor Group aims to create a more integrated and resilient ecosystem for the automotive industry in North America.
At the ceremony, Chung Euisun, Executive Chair of Hyundai Motor Group, said that steel remains one of the fundamental pillars of a new chapter in industrial manufacturing in the United States and that the Group intends to play an active role in strengthening domestic manufacturing and shaping the future of “Made in America.”
of Louisiana, also described the selection of the state for Hyundai’s first steel production facility in North America as a result of Louisiana’s workforce capacity, infrastructure, and business environment for attracting major investments.
addition to creating direct jobs, the $5.8 billion investment will generate new opportunities for local businesses and help strengthen the manufacturing supply chain in the United States.
Presence Upstream in the Value Chain
Hyundai Motor Group, the world’s third-largest automaker by production volume, sold more than 7.2 million vehicles worldwide last year. The Group owns the Hyundai Motor, Kia, and Genesis brands and operates through more than 70 affiliates in sectors including automobiles, steel, batteries, robotics, and transportation technologies.
The new Louisiana plant is based on a production model that Hyundai Motor Group previously established in South Korea, under which Hyundai Steel’s steelmaking operations directly support the automotive production chain.
This model is now set to be expanded to the United States to establish part of Hyundai Motor Group’s automotive steel supply chain within North America.
The launch of the Louisiana project, first announced at the White House in March 2025, signals that Hyundai Motor Group is moving toward expanding its presence across various segments of the manufacturing value chain in the United States. This strategy goes beyond automobiles and auto parts and now encompasses steel as one of the most important links in the industrial value chain.
