Business Hyundai Steel kicks off $5.8b Louisiana steel mill ASCENSION PARISH, Louisiana -- Hyundai Steel broke ground Friday on a $5.8 billion steel mill in Louisiana, marking a major step in the South Korean steelmaker’s effort to establish a manufacturing ba

ASCENSION PARISH, Louisiana -- Hyundai Steel broke ground Friday on a $5.8 billion steel mill in Louisiana, marking a major step in the South Korean steelmaker’s effort to establish a manufacturing base in the US and grow its supply of automotive steel to global carmakers.

Hyundai-Posco Louisiana Steel, an electric-arc furnace joint venture backed by steelmakers Hyundai Steel and Posco as well as Hyundai Motor and Kia, will have an annual production capacity of 2.7 million metric tons of steel sheets when commercial operations begin in 2029.

A ceremonial groundbreaking event for HPLS was held in Ascension Parish, Louisiana on Friday, more than a year after Hyundai Motor Group first announced plans for the steel mill at the White House in March 2025.

The ceremony was attended by senior officials and business leaders from both countries, including Louisiana Governor Jeff Landry, US Under Secretary of Commerce for International Trade William Kimmitt, US Representatives Troy Carter and Julia Letlow, Korean Minister of Trade, Industry and Resources Kim Jung-kwan and South Korean Ambassador to the US Kang Kyung-wha.

Business leaders in attendance included Hyundai Motor Group Executive Chair Chung Euisun and Posco Group Chair Chang In-hwa.

“This plant will be both our company’s first integrated steel mill dedicated to automotive steel sheet and the first of its kind in America,” said Chung at the ceremony. “The steel produced here will support Hyundai Motor Group and other automakers as they build the next generation of mobility.”

He added that the plant will also help strengthen the foundation of key industries, from AI data centers to power generation, while contributing to safer workplaces across America.

Kimmitt praised Hyundai Steel’s decision to establish production in the US, saying the investment would strengthen the country’s steel and automotive manufacturing base.

“Hyundai Steel and the broader Hyundai Motor Group have answered the call of President Trump in a very big way,” he said. They have made a commitment to build steel in America, to expand American capacity, and to deepen an industrial ecosystem that connects steelmaking directly to automobile production here in the United States.”

Industry Minister Kim stressed that the project demonstrates how Korea and the US can work together to strengthen their industrial bases.

“America has energy, a skilled workforce and a great market. Korea has manufacturing strength and decades of industrial experience,” Kim said. ”Together, we can build more. Together, we can create more jobs and together, we can compete better.”

He also called on the US government to ease tariffs on equipment and materials that are not readily available domestically so that the project can move forward on schedule and without disruptions.

The facility is billed by the company as the first US steel mill specializing in automotive steel produced through an electric-arc furnace, or EAF.

Unlike conventional blast furnaces that primarily use iron ore and coal, EAFs melt steel using electricity and can make greater use of recycled scrap. The production is expected to reduce carbon emissions by approximately 70 percent than traditional blast furnaces, according to Hyundai Steel.

The project is also expected to have a significant economic impact on the region. It is expected to create 1,300 direct jobs and 4,100 indirect jobs once fully operational, according to the company.

The mill will be built on a roughly 1,700-acre site along the Mississippi River, giving the facility access to major transportation infrastructure for bringing in raw materials and shipping finished steels.

Of its total annual output, about 1.8 million tons will be automotive steel, while the remaining 900,000 tons will be used for other applications.

HLPS is jointly owned by Hyundai Steel with a 50 percent stake, Posco with 20 percent and Hyundai Motor and Kia with 15 percent each.

Under the partnership, Hyundai Steel will take the lead in constructing the mill and overseeing its production and sales operations, while Hyundai Motor and Kia will be able to secure a stable supply of automotive steel to its US plants in nearby Alabama and Georgia. Posco, meanwhile, will seek to expand its sales presence in the North American market while providing technological cooperation for the project.

With Korea’s two largest steelmakers, Hyundai Steel and Posco, joining forces, the HPLS is expected to establish itself as a core supply chain hub for the North American automotive industry.

“Posco and Hyundai Steel may be competitors domestically, but from a global perspective, both are Korean companies,” said Posco Group Chair Chang In-hwa. “If Posco combines its hydrogen reduction ironmaking technology and automotive steel sheet technology with Hyundai Steel’s capabilities, this company has the potential to become the most competitive in the world.”

The Louisiana project comes as Hyundai Motor Group expands its manufacturing footprint in the US and seeks to localize more of its supply chain, forming part of the group’s pledged $26 billion US investment through 2028.

The broader investment plan spans automotive production, advanced steelmaking, robotics and other key sectors as the group seeks to build a more integrated manufacturing and mobility ecosystem in the US. Hyundai Motor Group said it has invested more than $20.5 billion in the country since entering the US market in 1986.