South Korea’s Hyundai Motor Group announced on Monday that it has entered into a memorandum of understanding with Posco Holdings to collaborate on its upcoming U.S. steel plant project in Louisiana.
According to a press release from Hyundai, Posco will invest equity in the steel factory project, marking a significant step toward the construction of the facility, which is set to begin production in 2029. In addition to the investment, Posco is also exploring the possibility of purchasing steel from the plant once production commences.
Hyundai Motor Group’s move follows its recent commitment to invest $21 billion in the United States, which was unveiled last month during a meeting with President Donald Trump at the White House.
As part of the deal, Hyundai Steel, alongside Hyundai Motor Group, will invest a total of $5.8 billion into the Louisiana project, which aims to achieve an annual production capacity of 2.7 million tonnes of steel.
The announcement comes amid ongoing trade tensions between the U.S. and South Korea. Earlier this month, President Trump imposed a 25% tariff on South Korean steel imports, though the tariff was later suspended for a period of three months.
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