Hyundai Steel announced on the 25th that it plans to establish an electric steel mill in Louisiana, USA, aiming for commercial production by 2029.
The total investment scale is $5.8 billion (approximately 8.5 trillion won), and it plans to build the first electric integrated steel mill in the U.S. with a seamless process from raw materials to products. The production capacity is expected to reach 2.7 million tons annually.
The steel mill will operate as a specialty plant for automotive steel plates and will consist of a raw material production facility (Direct Reduction Plant) that produces Direct Reduced Iron and electric furnaces, as well as hot and cold rolled steel production facilities.
Additionally, it is located adjacent to the Hyundai Motor Alabama plant and the Kia Georgia plant, as well as the newly launched Hyundai Motor Group Metaplant America (HMGMA), considering logistics cost reduction and the establishment of a stable supply system.
Hyundai Steel aims to secure new growth engines by localizing the supply of automotive steel plates through the construction of the electric steel mill in the U.S. and transitioning to a long-term carbon reduction system.
Hyundai Motor and Kia, along with U.S. automobile manufacturers, plan to focus on supplying steel plates used in strategic vehicle models and target the Latin America region, including Mexico and Brazil, as well as European local companies in the future.
The company is in discussions for joint investment with Hyundai Motor Group to ensure stable funding and strengthen competitiveness in the U.S. steel business, and is also considering equity investment from strategic partners.
A representative from Hyundai Steel noted, “We will establish a global production base to secure a foundation for future growth and solidify the direction of the steel company to ensure sustainable growth.”