Hyundai and Posco agree to co-operate on US steel plant

South Korea's Hyundai Motor Group, Hyundai Steel to build factory in Louisiana

22 April 2025 - 08:32 By Reuters
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Posco will make an equity investment in Hyundai Motor Group's steel factory project in Louisiana, US.
Posco will make an equity investment in Hyundai Motor Group's steel factory project in Louisiana, US.
Image: Supplied

South Korea's Hyundai Motor Group said on Monday it has signed a memorandum of understanding with Posco Holdings for co-operation on its planned US steel plant.

Posco will make an equity investment in Hyundai Motor Group's steel factory project in Louisiana, the group said in a press release.

The steelmaker was also considering selling some of the steel to be produced from the factory. Production is slated to begin in 2029.

The South Korean automaker announced plans to invest $21bn (R392.23bn) in the US with President Donald Trump at the White House last month.

In a regulatory filing, Hyundai Steel said it would invest $5.8bn (R108.34bn) along with Hyundai Motor Group to build a steel plant in Louisiana with an annual capacity of 2.7-million tonnes.

Trump slapped 25% tariffs on South Korea this month, which were later suspended for three months.


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