Hyundai Steel officially broke ground this week on its $5.8 billion Electric Arc Furnace-based integrated steel mill project in Louisiana. The massive facility, which is slated to begin commercial production in 2029, has been described as \u201cthe first of its kind in North America.\u201d<\/p>\n
It will be capable of producing 2.7 million metric tons of hot-rolled and cold-rolled steel sheets every year, primarily for automotive applications. The project is also expected to support 5,400 jobs, including 1,300 direct positions.<\/p>\n
Hyundai Steel held a ceremonial event for the project on September 4 at RiverPlex MegaPark in Ascension Parish under the slogan \u201cBuilding the Future of Steel, Together with Louisiana.\u201d<\/p>\n
\u201cAs America strengthens its manufacturing leadership, steel will continue to power the next chapter of its industrial resurgence,\u201d said Hyundai Motor Group Executive Chair Euisun Chung. \u201cWe are proud to contribute to that vision and to the future of \u2018Made in America\u2019. Together, we will turn our shared ambitions into greater productivity and prosperity.\u201d<\/p>\n
A brand new and improved facility<\/p>\n
At the heart of the new facility will be advanced Electric Arc Furnace and direct reduction technology.<\/p>\n
The mill\u2019s Direct Reduction Process will use natural gas to remove oxygen from iron ore, producing direct reduced iron that can then be fed directly into the electric arc furnace, BigGo Finance reports. The process can reduce carbon dioxide emissions by approximately 70 percent compared with coal-based blast furnace production.<\/p>\n
\u201cElectric arc furnace molten steel can reduce carbon dioxide emissions by about 70% compared to blast furnace molten steel, and by directly connecting the DRP and electric arc furnace within the same plant, we can further enhance efficiency and productivity. We will be able to produce higher-grade products than conventional electric arc furnaces that use only steel scrap,\u201d says Hyundai Steel in BigGo Finance<\/a>.<\/p>\n 1.8 million tons of the mill\u2019s planned annual production will consist of automotive steel sheet, while another 900,000 tons will be produced for general applications. <\/p>\n The mill will be operated by HYUNDAI-POSCO Louisiana Steel (HPLS), a joint venture between Hyundai Steel, POSCO, Hyundai Motor Company, and Kia Corporation. Hyundai Steel holds a 50% stake, POSCO owns 20%, and Hyundai Motor and Kia each hold 15 percent in the venture.<\/p>\n A much larger initiative<\/p>\n Originally announced in March 2025, Louisiana Economic Development (LED) said it would occupy approximately 1,700 acres in Donaldsonville, anchoring RiverPlex MegaPark on the west bank of the Mississippi River in Ascension Parish.<\/p>\n Hyundai Steel plans to import an estimated 3.6 million tons of iron ore annually, according to LED<\/a>. Completed coils will be shipped by rail and truck to customers including Hyundai Motor Company, Kia, and other U.S. automakers, with the largest share of Louisiana-produced steel destined for Hyundai\u2019s U.S. vehicle manufacturing plants.<\/p>\n Louisiana offered Hyundai Steel<\/a> a $100 million performance-based grant for infrastructure improvements, while road, rail, electrical, and pipeline upgrades are planned to support development of the RiverPlex MegaPark. Hyundai Steel is also partnering with the Port of South Louisiana to build a deep-water dock for steel and material shipments.<\/p>\n