Hyundai Steel Plans to Build Steel Plant in the U.S. to Produce Automotive Steel Plates

2025-01-08

Jan. 7, 2025 - Hyundai Steel is considering investing in the construction of a steel mill in the United States. It is interpreted as a stable supply of automobile steel sheets produced in the U.S. to Hyundai Motor and Kia plants in response to uncertainties such as the Donald Trump administration's tariff imposition policy.

According to the business community on the 7th, Hyundai Steel is discussing investment conditions with multiple state governments in the southern U.S. to build an electric furnace plant for automobile production.

Hyundai Steel said, "We are reviewing various regions to cope with global protectionism, and one of them is the United States," adding, "We are reviewing investments in the southern part of the United States, and no specific plan has been decided, such as the amount, timing, and production method."

The steel industry interprets that Hyundai Motor Group, which includes Hyundai Steel, is considering large-scale steel investments in the region in consideration of the Trump administration's policies such as imposing tariffs, which will be launched on the 20th.

If Hyundai Steel produces automobile steel plates in the United States, it can supply them directly to Hyundai Motor and Kia plants in Georgia. Hyundai Motor Group will produce up to 1.2 million units a year at its Kia Motors plant in Georgia, Hyundai Motor plant in Alabama, and Hyundai Motor Group's Metaplant America (HMGMA) electric vehicle plant in Saban, Georgia.

Hyundai Steel has established overseas bases in the form of establishing steel service centers (SSCs) in India and the United States in line with Hyundai Motor Group's overseas expansion.

The specific investment scale and location have not yet been determined, but the annual production volume is estimated to be several million tons, considering the production scale required to meet the demand of the Hyundai Motor Group's automotive plants. Approximately 1 ton of steel sheet is required per car, highlighting the significant demand for steel in the automotive industry.