DONALDSONVILLE — Hyundai Motor (005380) Group broke ground on Hyundai Steel-POSCO Louisiana Steel (HPLS), its first steel production base in the United States. As the first integrated electric-arc furnace mill in the U.S. dedicated to automotive sheet steel, HPLS is expected to play a pivotal role in completing the group's advanced mobility supply chain in the country, spanning raw material production through vehicle sales.
Hyundai Motor Group Executive Chairman Euisun Chung said at the groundbreaking ceremony in Donaldsonville, Louisiana, on the 4th that steel produced at HPLS would generate synergy both in improving vehicle quality and in easing the burden of tariffs. He said the steel would also be used in Atlas, the humanoid robot the group plans to build in the United States. "I hope that by working harder, we can supply steel for rockets, including those of SpaceX," Chung said.
Hyundai Motor Group, in a joint venture with POSCO, is investing $5.8 billion, or about 8 trillion won, in Louisiana to produce high-value, low-carbon specialty steel and general-purpose steel products at an annual capacity of 2.7 million tons starting in 2029. The construction and operation of HPLS is expected to serve as a foothold for overcoming U.S. steel tariffs of up to 50% and as a buffer against the Donald Trump administration's pressure for expanded investment in the United States.
