Hyundai Steel Starts $5.8 Billion Louisiana Steel Mill Project
Steel News | 2026-09-07 04:58:48 | By Paul Ploumis
Hyundai Motor and Kia have already committed to purchasing 800,000 tons of automotive steel, while POSCO, which owns a 20% interest in HPLS, will market another 600,000 tons, a news release said.
SEATTLE (Scrap Monster): Hyundai Steel has begun construction of a major steelmaking project in Louisiana. The development is part of the company’s efforts to expand local production and strengthen its position in the U.S. automotive market.
The company held a groundbreaking ceremony on September 4 for the Hyundai-POSCO Louisiana Steel (HPLS) electric arc furnace mill in Donaldsonville. The facility will be built at an investment of $5.8 billion and will have capacity to produce 2.7 million tons of flat steel annually. Automotive steel will make up 1.8 million tons of the planned output, while another 900,000 tons will be supplied for general applications. Upon reaching full capacity, the plant is expected to generate about $4 billion in annual revenue.
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Hyundai Motor and Kia have already committed to purchasing 800,000 tons of automotive steel, while POSCO, which owns a 20% interest in HPLS, will market another 600,000 tons, a news release said.
Production is scheduled to begin in the first quarter of 2029. The mill will use direct reduced iron and scrap in electric arc furnaces, supported by renewable power and advanced carbon capture technology.
According to Hyundai Steel, the process is expected to reduce emissions by around 70% compared with traditional blast furnace production. Additionally, the new facility will reduce the company's dependence on exports from South Korea.
The Louisiana location is located in close proximity to major automotive plants. It also offers strong transport links through the Mississippi River.