Hyundai Steel Company breaks ground on steel mill in Louisiana
Hyundai Steel Co. recently celebrated the groundbreaking of the first electric arc furnace-based integrated steel mill, with production set to begin in 2029.
The $5.8 billion mill will be built in Ascension Parish, Louisiana.
It is the first North American steel production base for Hyundai Steel, Hyundai Motor Group’s steelmaking arm, a press release states.
The mill will supply high-quality, low-carbon-emissions steel to global automakers including Hyundai Motor and Kia. It is part of the automaker’s $26 billion commitment to strengthen U.S. local supply chain and industrial resilience, according to the release.
“As America strengthens its manufacturing leadership, steel will continue to power the next chapter of its industrial resurgence,” said Hyundai Motor Group Executive Chair Euisun Chung in the release. “We are proud to contribute to that vision and to the future of ‘Made in America’. Together, we will turn our shared ambitions into greater productivity and prosperity.”
According to the release, the mill will have an annual capacity of 2.7 million metric tons of hot-rolled and cold-rolled steel sheets, primarily for automotive applications. The mill will supply steel to Hyundai Motor’s Alabama plant, Kia’s Georgia manufacturing facility, and Hyundai Motor Group Metaplant America (HMGMA).
Along with using an electric arc furnace, the facility will use direct reduction process technologies, the release states.
“The advanced technology cuts CO₂ emissions approximately 70% from the conventional Blast Furnace methods, providing access to more sustainable, low-carbon emissions steel, a key asset underpinning long-term nationwide competitiveness,” the release states.
HYUNDAI-POSCO Louisiana Steel LLC (HPLS) will operate the mill. HPLS is a joint venture between Hyundai Steel, POSCO, Hyundai Motor Co., and Kia Corp.
The project builds on a manufacturing model Hyundai Motor Group has developed in Korea. The integrated steelmaking operations have supported a value chain extending from steel production to finished vehicles.
It will establish an integrated production system that connects on-site Direct Reduced Iron (DRI) production with Electric Arc Furnace (EAF) steelmaking and downstream production of high-quality automotive steel.
A Direct Reduction Plant (DRP) will produce DRI on site and feed it directly into two EAFs through a continuous charging system. This integrated configuration is designed to improve production efficiency and enable a higher share of DRI to be used in producing advanced steel grades, the release states.
“Advanced refining and continuous casting facilities help manage impurities such as nitrogen and sulfur, helping the mill meet the stringent quality requirements of automotive steel,” the release states. “The production route is expected to reduce carbon emissions from molten steel production by approximately 70 percent compared with Hyundai Steel’s conventional blast furnace process in Korea.”
The facility will also incorporate carbon capture capabilities and be designed to gradually replace the natural gas used in the DRP with hydrogen as future infrastructure and availability develop.
“By bringing steel production closer to Hyundai Motor and Kia’s U.S. operations, Hyundai Motor Group aims to create a more integrated and resilient automotive manufacturing ecosystem in North America,” the release states.
HPLS plans to serve automakers beyond Hyundai Motor Group, according to the release.
“Producing automotive steel closer to customers will help strengthen supply stability, shorten delivery lead times, and enable faster technical and quality support,” the release states. “The local production base will also allow Hyundai Steel to work more closely with automakers on product development and quality requirements, while developing and operating the facility with a strong focus on safety and disciplined execution.”
Partnerships with Louisiana State University (LSU), River Parishes Community College (RPCC), and local high schools help HPLS build a local talent pipeline, the release states.
RPCC’s Hyundai Workforce Training Center in Donaldsonville is currently under development. It will include training students for trade jobs at HPLS, dual enrollment opportunities for area high school students, and a Master Research Agreement with LSU to expand next-generation steelmaking.
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Photo courtesy of Hyundai Steel Company.