Steel Mills

POSCO inks MoU with Hyundai on Louisiana EAF mill

Written by Ethan Bernard

April 21, 2025

South Korean steelmaker POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.

“The cooperation will allow POSCO to secure a bridgehead for its entry into the North American steel market,” Hyundai said in a statement on Monday.

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.

A request for comment from POSCO was not returned by time of publication.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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