DONALDSONVILLE — Hyundai Motor (005380) Group Executive Chairman Euisun Chung said the Hyundai Steel (004020)-POSCO Louisiana Steel (HPLS) plant, the group's first integrated electric arc furnace mill specializing in automotive steel sheet in the United States, will serve as a key production base for coping with trade pressure and improving product quality.
Meeting with reporters at the HPLS groundbreaking ceremony in Donaldsonville, Louisiana, on the 4th, Chung said, "The United States imports about 10 million tons of high-value-added specialty steel every year, and if we produce low-carbon steel here, we can cover that market." He added, "In that sense, it will also benefit the United States." He went on to say, "We are in a situation where we need to produce and use high-value-added steel to improve the quality of vehicles made in the United States," adding, "Tariffs were not the goal, but there are benefits on both sides, so we should be able to create synergy."
Asked about the tariff savings from local production, Chung said, "It is hard to put a figure on it." He added, "With tariffs changing constantly, we will not dwell on them too much and will instead focus more on producing better products and raising vehicle quality."
Chung also laid out a blueprint for expanding the use of the specialty steel produced at HPLS across advanced industries including robots and rockets. He expressed particular confidence that it would be applied to Atlas, the humanoid robot made by group robotics affiliate Boston Dynamics. "I think it naturally should be applied to Atlas," Chung said. "I hope we can also supply steel for SpaceX rockets and the like going forward."
On the background to the partnership with POSCO, Chung said, "POSCO is one of the world's top steelmakers and has cooperated with Hyundai Motor Group in many areas." He explained, "We have held in-depth discussions on future steel and next-generation batteries, and POSCO also saw this as a good opportunity for its U.S. expansion, so we came in together." He added, "By researching together here in a better direction, I believe we can achieve a win-win in terms of quality and technology."
Hyundai Motor Group is joining hands with POSCO to invest a combined $5.8 billion (about 8 trillion won) in the Louisiana area to build the first electric arc furnace mill in the United States dedicated to automotive steel sheet. The companies are targeting the start of commercial production in 2029, and if it operates as planned, it is expected to be recorded as the world's first electric arc furnace mill for automotive steel sheet.
