POSCO inks MoU with Hyundai on Louisiana EAF mill

South Korea-based Hyundai said the $5.8-billion mill “will specialize in producing high-quality next-generation automotive steel sheets.”

The mill will have an annual production capacity of 2.7 million metric tons of hot-rolled and cold-rolled steel sheets once operations start in 2029.

The amount of POSCO’s investment was not disclosed. Recall that SMU previously reported that POSCO was mulling teaming up with Hyundai in the Louisiana mill.

A Reuters article at the time said the move by POSCO came in response to US tariffs on steel.

South Korea is now subject to the new 25% Section 232 steel tariffs vs. having a quota previously in exchange for exemption from the 25% tariff.

Hyundai said the Louisiana plant will allow it to deliver steel sheet to its major production bases in the US. These include Hyundai Motor Group Metaplant America (HMGMA), Hyundai Motor Company’s plant in Alabama, and Kia Corp.’s Autoland Georgia facility.

The statement noted that  “POSCO aims to establish itself as an industry-leading supplier of automotive steel and key battery materials.”

The MoU also includes collaboration between the companies on battery materials.

When asked for comment, a POSCO spokesperson gave SMU this statement (translated from the Korean) from Ju-Tae Lee, president of POSCO Holdings: “Through the partnership, POSCO will be able to find solutions for sustainable growth across its businesses ranging from steel to rechargeable batteries by leveraging the two firms’ business synergies amid global trade pressures and a shifting paradigm.”