DONALDSONVILLE, La. — "The steel produced here will serve as a solid foundation supporting not only Hyundai Motor Group, which is building next-generation mobility, but also other original equipment manufacturers here," Hyundai Motor Group Executive Chairman Euisun Chung said.
Chung made the remarks on the 4th at the groundbreaking ceremony for the Hyundai Steel-POSCO Louisiana Steel plant, known as HPLS, in Donaldsonville, Louisiana, as he underscored the significance of building a mill in the United States. HPLS, a $5.8 billion (about 8 trillion won) project jointly undertaken by Hyundai Steel, Hyundai Motor, Kia and POSCO, will serve as a forward base as Korean steelmakers push into global markets past trade pressure and a 50% tariff.
Chung said HPLS "will support the foundations of major industries, from artificial intelligence data centers to power generation, and create new opportunities for future generations in both Korea and the United States." He also laid out a vision to expand the use of specialty steel produced at HPLS across advanced industries including robotics and rockets.
The 7.37 million-square-meter HPLS site, once a sprawling expanse of sugarcane fields, will be transformed in three years into an advanced integrated steel mill — the world's first to produce automotive steel sheet using an electric arc furnace. HPLS will begin mass production in 2029 with annual capacity of 2.7 million tons. The plant is expected to generate about 5,400 jobs in total, combining 1,300 direct hires and 4,100 indirect positions.
In a congratulatory address, Trade and Industry Minister Kim Jung-kwan said the project "is not simply the construction of a steel mill but a symbol of Korea-U.S. cooperation," adding, "I ask the state and federal governments for continued support to sustain this momentum." Louisiana Governor Jeff Landry said Hyundai Motor Group's investment gives "the Louisiana community an opportunity to work, to learn and to make use of everything it has."
HPLS is a production base designed to confront U.S. tariff pressure on foreign steel head-on. The United States is the world's largest steel importer and the second-largest automobile producer, but under the second Donald Trump administration it has restricted steel imports through a 50% tariff and steep anti-dumping duties. Chung said, "The United States imports 10 million tons of high-value specialty steel every year, and now that can be covered locally."
HPLS plans to actively pursue new demand from the U.S. auto industry on the strength of high-quality specialty steel. Hyundai Motor President Jose Muñoz said the company "will push to apply HPLS steel across all vehicle models," adding, "we are also holding actual discussions with other automakers" on steel supply.
Donaldsonville, where HPLS is located, is considered a land logistics hub, with major railroad lines nearby. Situated along the Mississippi River, the site can also berth Panamax-class vessels of about 70,000 tons, giving it optimal conditions for shipping raw materials and finished products. Energy costs for natural gas and electricity are far lower than in Korea, securing cost competitiveness. The location also offers strong access to major automakers' production bases, including Hyundai Motor's plant in Alabama and Kia's in Georgia, as well as GM in Texas, Volkswagen in Tennessee and Honda in Alabama.
Through HPLS, Hyundai Motor Group will complete a local mobility supply chain stretching from raw material production to vehicle sales, accelerating its push into the U.S. and European Union markets. The group ranks fourth in U.S. auto market share, behind General Motors, Toyota Group and Ford. Industry watchers expect the low-carbon specialty steel sheet that HPLS will supply directly to play a central role in strengthening the quality competitiveness of Hyundai Motor and Kia vehicles.
HPLS will also serve as a testing ground where Hyundai Steel and POSCO, both holding world-class technology, join forces to develop and apply next-generation production technologies. Hyundai Steel holds a 50% stake in HPLS, with Hyundai Motor and Kia each holding 15% and POSCO 20%. Hyundai Steel and POSCO have held long-running talks on cooperation in green technologies such as hydrogen-based steelmaking. POSCO Group Chairman Chang In-hwa, who attended the ceremony, said, "POSCO and Hyundai Steel are competitors at home, but from a global perspective both are Korean companies," adding that the HPLS project "aims to help Korean companies go abroad, cooperate with each other and raise the standing of our firms."
