South Korea’s top steelmaker POSCO is considering acquiring a stake in an electric arc furnace steel mill that Hyundai Steel plans to build in the U.S. state of Louisiana, people familiar with the matter said.
The potential investment is part of broader efforts by South Korean companies to navigate steep U.S. tariffs on imported steel. The Trump administration has maintained a 25% tariff on most foreign steel products, prompting overseas producers to expand local manufacturing.
POSCO has been weighing a range of U.S. investment options after adopting a strategy to bolster its American presence. While discussions are ongoing, no final decision has been made, a POSCO Group official said.
Hyundai Motor Group plans to begin construction on the Louisiana plant with the aim of starting operations in 2029. The project is expected to require around $5.8 billion, with about half of the funding to come from external investors. POSCO is among those being considered.
If the deal proceeds, it would mark a rare partnership between South Korea’s two largest steelmakers as they seek to circumvent U.S. trade barriers. Still, industry analysts remain cautious about the potential gains for POSCO, noting that Hyundai Steel would retain operational control and integrating POSCO’s technology at the plant could prove challenging.
