Hyundai from South Korea is expected to announce a $20 billion investment to the U.S. and that includes a $5 billion steel plant located in Louisiana, which was confirmed by someone close to the situation.
The new facility is estimated to be able to generate about 1,500 jobs and will manufacture advanced steel for Hyundai's two electric vehicle assembly plants in the U.S. This investment will expand the company’s supply chain and support the demand for EV manufacturing in North America.
Earlier this month, a Hyundai Steel spokesperson confirmed that the company has been exploring the concept of building a factory in the southeastern United States but has not made a final decision. The spokesperson pointed out that rising U.S. tariffs may create hurdles for the Korean steel industry.
The investment comes amid significant changes in trade policy by the U.S. Government. Last week, President Donald Trump announced tariffs that increased the global tariffs on steel and aluminum imports from 10 percent to 25 percent along with new duties for hundreds of downstream products, which are namely parts like nuts and bolts, as well as bulldozer blade replaceable parts.
In spite of these trade uncertainties, Hyundai’s investment demonstrates its commitment to the U.S. market and its long-term vision to remain competitive in the electric vehicle space. The new steel plant will be a key part of resolving supply chain issues while also contributing to the company's development.