Hyundai bets big on steel to anchor US strategy

Hyundai Motor Group is investing heavily in steel to bolster its presence in the United States, aiming to establish a robust local supply chain that extends beyond the automotive sector to encompass robotics, aerospace, and artificial intelligence (AI) data centers. During a groundbreaking ceremony for a $5.8 billion electric arc furnace steel mill, jointly developed by Hyundai Steel and POSCO, Hyundai Motor Group Executive Chair Chung Euisun emphasized the facility's pivotal role as a production center for high-grade, low-carbon steel catered to diverse advanced industries within the U.S. This strategic shift diverges from the previous approach of utilizing the mill as a protective measure against a 50% tariff on imported steel.

Rather, Hyundai envisions the plant as the cornerstone for broadening its manufacturing value chain in the world's largest economy. Chung announced that production at the site is slated to commence in early 2029, with the mill supplying steel sheets for vehicles and components for humanoid robots, AI data centers, and power-generation installations.