Hyundai Motor Group is exploring plans to construct a steel manufacturing facility in New Orleans, marking the Korean automotive giant’s first steel production venture outside its home market.
The proposed 10 trillion won ($7 billion) plant would primarily serve the company’s expanding electric vehicle operations in the United States. Sources familiar with the matter say the facility could break ground as early as 2026, with production scheduled to begin in 2029.
The steel mill would employ direct reduction technology, a lower-carbon alternative to traditional blast furnaces, potentially easing regulatory approvals. The plant’s expected capacity of several million tons annually would exceed the 1.2 million tons needed by Hyundai and Kia’s existing US assembly lines.
The investment comes as Korean steelmakers face mounting pressure from US trade policies, including annual export quotas of 2.68 million tons and potential tariffs of 10-20% on additional shipments. The timing is particularly notable following President Joe Biden’s recent block of Nippon Steel’s bid for US Steel, highlighting heightened scrutiny of foreign investment in the sector.
While Hyundai Steel confirmed it is reviewing US investment options, company officials declined to provide specific details about the project. The facility would supply Hyundai’s Alabama plant, Kia’s Georgia operations, and the new Metaplant America in Georgia, which can produce up to 500,000 electric vehicles annually.
