Hyundai Motor Group Partners with Posco Holdings for US Steel Plant

Hyundai Motor Group, based in South Korea, announced on Monday the signing of a memorandum of understanding with Posco Holdings to collaborate on its projected steel manufacturing facility in the United States.

According to a press release from Hyundai Motor Group, Posco will be making an equity investment in the steel plant venture located in Louisiana.

The steel manufacturer is also considering allocating a portion of the factory’s steel output for sale on the open market.

Production at the new facility is scheduled to commence in 2029.

Last month, the South Korean automaker revealed intentions to invest $21 billion in the United States, an announcement made alongside then-President Donald Trump at the White House.

In a separate regulatory filing, Hyundai Steel disclosed a planned investment of $5.8 billion, in conjunction with Hyundai Motor Group, for the construction of the Louisiana steel plant. The plant is expected to have an annual production capacity of 2.7 million tons.

Earlier this month, the US imposed tariffs of 25% on South Korean steel, which were subsequently suspended for a period of three months.