Hyundai Steel Co. has selected Donaldsonville, Louisiana, as the site for its $5.8 billion steel mill, positioning the company to supply Hyundai Motor’s expanding US operations while reducing carbon emissions.
The Korean steelmaker is courting US automakers and steel producers for equity investments to help finance the project, according to sources familiar with the matter. The Louisiana facility will utilize direct reduced iron technology with electric arc furnaces, which emit approximately 70% less carbon dioxide than traditional blast furnaces.
Located along the Mississippi River, Donaldsonville offers logistical advantages, affordable electricity, and tax incentives that helped it edge out competing sites in Georgia and Texas. The plant will produce 2.7 million tons of steel annually, primarily supplying Hyundai Motor and Kia facilities in Georgia and Alabama.
The investment is part of Hyundai Motor Group’s broader $21 billion US expansion announced earlier this week during a White House meeting between company executives and President Trump. Construction is expected to begin in 2026, with the facility creating about 1,300 direct jobs averaging $95,000 in annual salary.
Hyundai Steel’s decision comes as US environmental regulations effectively prohibit construction of new blast furnaces, forcing steelmakers to adopt cleaner technologies. The company’s DRI-EAF process will allow it to manufacture high-strength automotive steel crucial for next-generation vehicles.
