POSCO (005490.KS) announced Thursday that it will acquire a 20% stake in Hyundai Motor Group's electric arc furnace integrated steel mill project in Louisiana, United States.
The acquisition is valued at 858.6 billion won ($600 million). POS-Louisiana, a special purpose company wholly owned by POSCO, will invest in Hyundai Steel's Louisiana steel mill. The acquisition is scheduled for completion by December 31, 2027, with POSCO planning to make payments in installments during the construction period.
The stake acquisition follows a memorandum of understanding on mutual cooperation in steel and secondary battery sectors signed between POSCO Group and Hyundai Motor Group in April. At that time, POSCO Group said it aimed to position itself as a global top-tier supplier of steel materials for future mobility and secondary battery materials, while Hyundai Motor Group said it would lead the future mobility market by securing stable supplies of customized premium materials as a global top-three automaker.
POSCO currently operates an automotive steel sheet plant in Mexico (Posco-Mexico) and steel processing centers in North America, but has been hit hard by high U.S. tariffs due to the lack of a local steel mill in the United States. Through this joint venture, the company will secure a production base in North America while ensuring smooth material supply, establishing a flexible global production and sales system.
Additionally, for POSCO Group, which produces secondary battery materials, strengthening collaboration with Hyundai Motor Group is expected to further maximize synergies.