Hyundai Weighs Strategic Location for U.S. Steel Mill

Hyundai Motor Group is actively considering Louisiana as the location for its first-ever overseas electric arc furnace (EAF) steel mill, according to reports from the Korea Economic Daily. The decision comes amid growing concerns over potential tariffs from the Trump administration, which could impact the cost structure of their manufacturing operations in the U.S. The facility would support Hyundai’s robust vehicle production footprint in North America by providing a more secure and cost-effective steel supply.

Exploration of Multiple U.S. Locations

While Texas and Georgia were also considered as potential sites, Louisiana is emerging as the top contender. Hyundai already operates major automotive plants in Alabama and Georgia, and Kia has its own facility in Georgia. A steel mill in Louisiana would not only reduce vulnerability to tariffs but also complement Hyundai’s existing operations by enhancing its steel procurement strategy, thereby ensuring smoother production cycles and lower manufacturing costs.

Timeline and Future Prospects

The company’s tentative plans outline a construction start date in 2026, with a completion goal of 2029. This extended timeline reflects Hyundai’s careful approach to expanding its steel production capabilities in alignment with market demands and potential tariff-related pressures. The facility would also bolster Hyundai’s long-term manufacturing sustainability by securing a steady and cost-effective steel supply for its U.S.-based vehicle production.