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Hyundai Steel and POSCO start building $5.8 billion EAF sheet mill in Louisiana

Hyundai Steel, POSCO, Hyundai Motor and Kia launched a $5.8 billion Louisiana EAF-based mill, targeting 2.7 Mt a year of automotive sheet from 2029.

By Loharo EditorialPublished Updated 2 min read
Steel framing and cranes at a new steel mill construction site
Illustration of a new electric arc furnace sheet mill under construction

Hyundai Steel and POSCO have formally launched a $5.8 billion steel mill in Louisiana. Built around electric arc furnaces with direct reduction, it is meant to supply 2.7 million tonnes a year of car-body sheet from 2029.

What happened

Hyundai Steel held a launch ceremony at the RiverPlex MegaPark in Ascension Parish, Louisiana, on 4 September 2026 (Hyundai Steel release; Hyundai Motor Group newsroom). AIST reported it on 8 September.

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  • The mill will be run by Hyundai-POSCO Louisiana Steel (HPLS), a joint venture of Hyundai Steel, POSCO, Hyundai Motor and Kia.
  • Capacity is set at 2.7 million tonnes a year of hot-rolled and cold-rolled sheet, mostly for cars. Commercial production is targeted for 2029.
  • The partners describe it as the first EAF-based integrated mill in the US, with a direct reduction process feeding the furnaces.
  • The project is expected to create 5,400 jobs, 1,300 of them direct.

It is Hyundai Steel’s first steelmaking base in North America and part of a wider Hyundai Motor Group investment programme in the US.

Why it matters for steel buyers

Two of Asia’s largest steelmakers are building inside the US tariff wall to serve Korean carmakers locally. Steel that used to be shipped from Korea will be melted in Louisiana instead.

For European buyers this has two effects. First, once the mill is running, Korean flat steel that no longer goes to the US could look for other outlets. EU import quotas will limit how much of it can come to Europe, but more Asian coil competing in third markets tends to weigh on export prices. Second, the DRI-EAF design is close to what European mills plan for their own decarbonisation, and US projects compete with them for equipment, engineers and iron ore pellets. See our raw materials signals for the pellet and scrap angle.

What to watch

  • Where the DRI feedstock comes from and how the partners secure DR-grade pellets.
  • Construction progress against the 2029 production target.
  • Whether Korean export volumes of automotive sheet shift away from the US as the mill ramps up.

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Sources

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By Loharo Editorial. Facts, analysis and uncertainty are labelled in line with our editorial standards. Report an error – corrections are dated and noted on the article. Information and analysis only, not investment advice.

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