In a major move showing some parts of global manufacturing shifting into the U.S., the oldest steel producer in South Korea is committing $5.8 billion on a Louisiana steel mill that will utilize electric arc furnace technology.
Hyundai Steel’s Louisiana mill will mainly produce steel plates for the automotive industry. Hyundai Steel is a part of the Hyundai Motor Group’s roster of companies.
Utilizing electric arc furnaces (EAFs) over the traditional blast furnaces, which are only fired by coal or other fossil fuels, will decarbonize operations at the new mill slated to open by 2029, the company says. Hyundai Steel hopes to produce about 2.7 million metric tons of steel annually at the Louisiana plant.
Although the South Korean steelmaker has used electric furnaces for decades, the concept of an integrated EAF mill is going to be unique in the U.S. and also rolled out to other sites globally, Hyundai leadership said.
"Hyundai Steel's investment in an EAF-based integrated steel mill in the U.S. is anticipated to stimulate local economic growth, including the creation of new job opportunities,” Hyundai Steel President and CEO Seo Gang-Hyun said in a statement. “We plan to supply automotive steel plates not only for Hyundai Motor and Kia's strategic models but also to expand sales to U.S. automakers in the future.”
Parent Hyundai Motor Group will jointly invest in the EAF technologies with its steel partner.
The new mill will also incorporate advanced technologies for producing direct reduced iron, alongside capabilities for hot-rolled and cold-rolled steel plates.
Electric arc furnaces are growing in popularity. They use electricity to produce steel from scrap and directly reduced iron, creating efficiencies in both materials and emissions. The EAFs, as opposed to blast furnaces, can be switched off when not needed and also do not require the use of coal or coke.
Altogether, EAF experts say, this can reduce emissions 75% to 85% compared to the carbon dioxide output of blast furnaces.
Earlier this week, President Trump’s office announced the Hyundai Steel move to locate its new plant in the Donaldsonville area of Ascension Parish in Louisiana. Construction is scheduled to begin in 2026.
The Louisiana mill will be strategically located near Hyundai Motor’s assembly plants in Montgomery, Alabama and Kia's West Point, Georgia—as well as the Hyundai Motor Group Metaplant America (HMGMA) facility in Savannah, Georgia – giving it a competitive edge in supplying automotive steel.
