South Korean steel giant POSCO announced it will acquire a 20% stake in Hyundai Steel's new electric arc furnace (EAF) steel plant in Louisiana, USA, formally deepening their cooperation in the North American market. 

The project represents a total investment of approximately US$5.8 billion, with POSCO contributing around US$580 million in equity financing through its newly established subsidiary, POSCO Louisiana. 

The EAF steel plant in Donaldsonville is expected to begin production in 2029, with an annual capacity of 2.7 million tons. It will produce hot-rolled, cold-rolled, and coated steel, primarily supplying the automotive industries in the US and Mexico. Analysts indicate that this investment is driven by both high US tariffs and rising demand for low-carbon steel.

Through localized production, POSCO and Hyundai Steel can not only reduce tariff risks but also ensure a stable long-term supply to their North American customers and enhance their responsiveness to the low-carbon steel market.