Hyundai Motor Group announced on Monday it has signed a memorandum of understanding with Posco Holdings to collaborate on a new steel manufacturing facility in the United States, as part of the South Korean automaker’s broader $21 billion U.S. investment strategy.
Under the agreement, Posco will take an equity stake in the planned steel plant, which is set to be built in Louisiana. Production at the facility is expected to begin in 2029, with an estimated annual capacity of 2.7 million tonnes, according to a regulatory filing from Hyundai Steel, a key affiliate of the group.
The partnership aims to strengthen Hyundai’s supply chain in North America and reduce dependency on imported steel, especially amid growing trade tensions. Posco is also considering selling some of the output from the new facility to third-party buyers.
The announcement follows Hyundai Motor Group’s recent declaration at the White House of a $21 billion investment in the U.S., made during a meeting with former President Donald Trump. The initiative spans automotive, energy, and manufacturing sectors.
Earlier this month, the U.S. imposed 25% tariffs on South Korean steel imports, though the duties were temporarily suspended for a three-month period, adding urgency for South Korean firms to localize production within the U.S. market.
