Full Breakdown
Hyundai Steel-Posco Louisiana Steel Mill: $5.8 B Low-Carbon Steel Project Set for 2029
9/8/2026, 8:41:38 PM
Project Overview
Hyundai Steel and POSCO are jointly constructing the Hyundai-Posco Louisiana Steel (HPLS) electric-arc-furnace (EAF) mill in Donaldsonville, Louisiana. The $5.8 billion facility will have an annual capacity of 2.7 million metric tons of hot-rolled and cold-rolled steel sheets, including 1.8 million tons of automotive steel and 0.9 million tons of general-purpose steel. Full commercial production is scheduled for 2029. Ownership is Hyundai Steel 50%, POSCO 20%, Hyundai Motor 15% and Kia 15%.
Background & Context
The project was launched at a ceremony in Ascension Parish on September 5. It marks Hyundai Steel’s first North-American production base and responds to U.S. steel tariffs, logistics costs, and currency volatility that have pressured Korean exporters. Situated on the Mississippi River, the mill can receive Panamax vessels of up to 70,000 tons and connect via rail to the Southern automotive belt.
Data & Statistics
- Investment: $5.8 billion (? 8 trillion won).
- Capacity: 2.7 million t/yr (1.8 million t automotive sheet, 0.9 million t general steel).
- Employment: ~5,400 jobs total, including ~1,300 direct positions.
- Revenue Projection: About $4 billion annually at full capacity.
- Carbon Reduction: DRI feedstock and EAF technology are projected to cut CO2 emissions by roughly 70 % versus conventional coal-fired blast furnaces.
- Stakeholder Allocation: Hyundai Motor and Kia each plan to purchase 400,000 t of automotive steel; POSCO will take about 600,000 t.
Official Statements & Responses
POSCO Group Chairman Chang In-hwa highlighted the strategic fit of POSCO’s hydrogen-reduction and automotive-sheet technologies, stressing cooperation between the two Korean rivals to compete with low-cost Chinese steel. Hyundai Motor Group Executive Chair Euisun Chung framed the investment as part of a broader U.S. manufacturing resurgence, linking the mill to the group’s $26 billion U.S. commitment through 2028.
Verbatim Quotes
- “If we sell the full 2.7 million tons annually, we estimate the plant could generate about $4 billion in revenue,” — Kim Taek-joon, vice president
- “Hyundai Motor and Kia are planning to purchase 400,000 tons of steel annually from HPLS, for a combined 800,000 tons, while Posco plans to take about 600,000 tons,” — Kim Hyeong-jin, CEO
Why It Matters / Impact
The HPLS mill will create a vertically integrated supply chain from steelmaking to vehicle assembly for Hyundai Motor Group in the United States, reducing reliance on imported steel subject to a 50 % tariff. Its low-carbon process aligns with industry decarbonization goals and could serve as a benchmark for future U.S. steel projects. Job creation and a partnership with Louisiana State University for research and workforce development embed the project in the regional economy.
What’s Next
Construction is slated to begin in the fourth quarter of this year, with mass production targeted for 2029. Hyundai Steel and its partners will continue to refine the natural-gas-based reduction process while evaluating hydrogen as a long-term fuel source. The joint venture will also pursue off-site customers for the remaining 900,000 t of general-purpose steel once the plant reaches full utilization.
