A $5.8 billion electric arc furnace (EAF)-based integrated steel mill project has launched in Louisiana, establishing a new domestic source of automotive steel that will combine on-site direct reduced iron (DRI) production with EAF steelmaking. The facility is targeted to begin commercial production in 2029 with an annual capacity of 2.7 million metric tons of hot-rolled and cold-rolled steel sheet, primarily for automotive applications.
Hyundai Steel Company held a ceremonial event for the project at the RiverPlex MegaPark in Ascension Parish, Louisiana. The mill will be operated by HYUNDAI-POSCO Louisiana Steel LLC (HPLS), a joint venture between Hyundai Steel, POSCO, Hyundai Motor Company, and Kia Corporation. The investment establishes Hyundai Steel’s first North American steel production base.
The facility will establish an integrated production system connecting on-site DRI production with EAF steelmaking and downstream production of automotive steel. A direct reduction plant will produce DRI on site and feed it directly into two EAFs through a continuous charging system. The configuration is designed to improve production efficiency and enable a higher share of DRI to be used in producing advanced steel grades.
Advanced refining and continuous casting facilities will be used to manage impurities such as nitrogen and sulfur to meet automotive steel quality requirements. The production route is expected to reduce carbon emissions from molten steel production by approximately 70% compared with the company’s conventional blast furnace process in Korea.
The facility will also incorporate carbon capture capabilities and is being designed to gradually replace the natural gas used in the direct reduction plant with hydrogen as infrastructure and availability develop.
With an annual steel production capacity of 2.7 million metric tons, the Louisiana mill will supply automotive steel to Hyundai Motor’s Alabama plant, Kia’s Georgia manufacturing facility, and Hyundai Motor Group Metaplant America, as well as other U.S. automakers. Producing automotive steel closer to clients is expected to strengthen supply stability, shorten delivery lead times, and enable faster technical and quality support.
President and CEO
Hyundai Steel Company
“Today, we are not simply announcing the construction of a new steel mill. We are standing at the starting point of a journey to shape the future of industry in Louisiana together,” said Bo-Ryong Lee, president and CEO of Hyundai Steel. “We aim to serve as a key supply chain partner to the North American automotive industry by providing a stable supply of high-quality automotive steel to [clients] in the United States and around the world.”
The project is part of Hyundai Motor Group’s $26 billion U.S. investment commitment through 2028. The Louisiana mill is expected to support 5,400 jobs, including 1,300 direct positions.
Press release is available in its original form here.
