Hyundai, Posco partner on $5.8bn US steel mill

Market: Battery materials, Metals
21/04/25

South Korea's Hyundai Motor and steelmaker Posco signed an agreement in principle to jointly invest in a $5.8bn new US steel mill as part of a plan to boost cooperation in the steel and battery sectors.

Hyundai aims to boost its global competitiveness through a stable supply of key mobility materials, while Posco seeks to lead in automotive steel and battery material supply.

Under the agreement, Posco will collaborate with Hyundai through an equity investment in the automaker's [electric arc furnace (EAF) integrated steel mill project]( https://metals.argusmedia.com/newsandanalysis/article/2647645) in Louisiana, US.

The $5.8bn Louisiana EAF steel mill, set to begin operations in 2029, will produce 2.7mn metric tonnes (t)/yr of high-quality hot- and cold-rolled automotive steel sheet.

The partnership also expands to battery material sourcing, supporting Hyundai's goal of reaching 3.26mn/yr electric vehicle sales by 2030.

Posco produces lithium hydroxide, cathode and anode active materials, and the partnership is expected to ensure a stable supply of battery raw materials that meet regulatory and supply chain requirements in the US and Europe.

By Carol Luk

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