Hyundai Steel mulls U.S. plant to supply carmakers as Trump's threat of tariffs looms

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Hyundai Steel mulls U.S. plant to supply carmakers as Trump's threat of tariffs looms

Published: 08 Jan. 2025, 14:50 Updated: 08 Jan. 2025, 17:04

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Hyundai Motor's EV plant in Georgia [HYUNDAI MOTOR]

Hyundai Steel is considering building a steel mill specializing in the automotive sector in the United States ahead of the second Donald Trump administration, which has warned of stricter tariffs on imports.

The investment will likely be up to $7 billion, according to multiple local reports, with a goal of starting operation in 2029.

"We are reviewing various scenarios to secure global competitiveness, but nothing has been decided so far," Hyundai Steel said in a regulatory filing Wednesday.

The Korean company is in talks on the location of the facility with various U.S. states, including Texas, Georgia and Louisiana, according to the reports.

Hyundai Steel will likely produce automotive steel plates to supply Hyundai Motor and Kia's factories in the United States. Hyundai and Kia's annual total production capacity will stand at some 1.2 million including a Georgia EV facility that started operation in October.

Each automobile needs one ton of steel plating. Based on the reported investment amount, Hyundai Steel's steel factory will likely have an annual capacity between 2 million to 3 million tons, which means it could lure other global automakers as clients.

The consideration comes with the United States imposing an annual quota of 2.68 million tons of steel from Korea during Trump's first term. Ahead of his second term, the president-elect declared that he would implement tariffs of up to 20 percent on all imports, and as high as 25 percent on all imports from Mexico and Canada.

BY SARAH CHEA [[email protected]]