Seoul— South Korean steel giant POSCO Group announced on Monday that it will invest in Hyundai Steel Co.’s upcoming steel mill in the United States, as part of a strategic move to mitigate the impact of sweeping U.S. steel import tariffs imposed by President Donald Trump.
The announcement follows a memorandum of understanding (MOU) signed between POSCO and Hyundai Motor Group to collaborate on Hyundai Steel’s U.S. plant and to expand joint efforts in the steel and rechargeable battery sectors.
Hyundai Steel plans to invest $5.8 billion in building a state-of-the-art electric arc furnace-based steel mill in Louisiana by 2029, with production expected to begin that same year. The facility will have an annual capacity of 2.7 million tons and will supply steel to Hyundai Motor Co., Kia Corp., and other automakers across North America—home to one of the world’s largest automotive markets.
POSCO’s decision comes in response to the 25% tariffs imposed on imported steel and aluminum by the U.S. administration, which has prompted global steelmakers to consider domestic manufacturing operations within the U.S. to maintain market access.
“We have not finalized the size of our stake in the project. Discussions on the investment ratio and related details will begin shortly,” a POSCO spokesperson said.
In a message to employees, POSCO Group Chairman Chang In-hwa underscored the urgency of expanding globally. “We must act swiftly to invest in steel mills in high-growth, high-margin regions like the U.S. and India. Delays could hinder our global competitiveness,” he warned.
POSCO, a long-time supplier of automotive steel to Hyundai, expects the partnership to further deepen its five-decade-long relationship with Hyundai Motor Group. Under the agreement, POSCO will supply steel produced at the new Louisiana plant to customers in both the U.S. and Mexico.
Additionally, the two companies will collaborate on developing advanced materials for rechargeable batteries, supporting future mobility and clean energy initiatives.
The investment underscores both companies’ commitment to securing supply chains, boosting local production, and aligning with evolving global trade dynamics. (Source: IANS)
