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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Hyundai Steel is considering constructing a steel mill in the United States to produce automotive steel sheets.
According to industry sources on Tuesday, Hyundai Steel is in discussions with multiple state governments in the U.S. to assess investment conditions for the plant. The company plans to supply automotive steel sheets produced at the U.S. facility to nearby plants, including Hyundai Motor and Kia factories in Georgia.
A Hyundai Steel official stated, "We are reviewing investment opportunities in the southern U.S. region," but clarified that details such as the investment amount, timeline, and production method have not yet been finalized.
While the annual production capacity remains undetermined, it is expected to reach several million tons, considering the investment scale and local demand. This estimate aligns with Hyundai and Kia’s existing production capacity in the U.S., including the Kia plant in Georgia (350,000 units annually), the Hyundai plant in Alabama (330,000 units annually), and the nearly completed Hyundai Motor Group Metaplant America (HMGMA) in Georgia, which is projected to produce 300,000–500,000 electric vehicles annually. It is estimated that approximately 1 ton of steel is required per vehicle.
Hyundai Motor Group achieved record-breaking U.S. sales in 2024, selling 1,708,293 vehicles, surpassing its previous high of 1,652,821 units in 2023. The group ranked fourth in U.S. market sales behind General Motors (GM), Toyota, and Ford.
The proposed U.S. steel mill will likely use a direct reduction iron (DRI) process, where pure iron is obtained through direct reduction and then melted in an electric arc furnace to produce molten steel.
Some analysts view this investment review as a strategic move to address potential uncertainties surrounding steel tariffs, especially with the potential start of a second Trump administration. In 2018, during Trump’s first term, the U.S. implemented a quota system instead of imposing tariffs on South Korean steel. Under this system, 54 categories of steel products, amounting to 2.63 million tons, were exempted from a 25% tariff, but exports beyond this quota were prohibited. Concerns are rising that a second Trump administration could further reduce these quotas.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
