Hyundai Steel Breaks Ground on $5.8 Billion Louisiana Mill

The Hyundai-POSCO Louisiana Steel project will target annual production of 2.7 million metric tons, including 1.8 million tons of automotive steel, with commercial operations scheduled to begin in 2029.

By Paul Ploumis
Published September 7, 2026

MONTREAL (Scrap Monster): Hyundai Steel and its partners have held a ceremonial groundbreaking for a major steelmaking project in Louisiana, advancing plans to establish a local production base serving the U.S. automotive market.

$5.8 Billion HPLS Mill Targets 2.7 Million Tons

The September 4 ceremony marked the launch of the Hyundai-POSCO Louisiana Steel, or HPLS, electric-arc-furnace mill in Donaldsonville.

The $5.8 billion facility is designed to produce 2.7 million metric tons of flat steel annually. Automotive steel will account for 1.8 million tons of planned output, while the remaining 900,000 tons will serve general applications.

Upon reaching full capacity, the plant is expected to generate approximately $4 billion in annual revenue.

Automakers and POSCO Commit to Planned Output

Hyundai Motor and Kia have committed to purchasing 800,000 tons of automotive steel. POSCO, which holds a 20% interest in HPLS, will market another 600,000 tons, according to a company news release.

Production Targeted for Early 2029

Commercial production is scheduled to begin in the first quarter of 2029.

The mill will use direct reduced iron and steel scrap in electric arc furnaces, supported by renewable power and advanced carbon-capture technology.

Hyundai Steel expects the planned production process to reduce emissions by approximately 70% compared with traditional blast-furnace production. The facility will also reduce the company’s dependence on steel exports from South Korea.

Louisiana Site Offers Automotive and River Access

The Donaldsonville location is close to major automotive manufacturing operations and offers transportation access through the Mississippi River.