Chung Eui-sun, chairman of Hyundai Motor Group, announced plans to produce high-quality, high-tech steel materials through the Hyundai Steel-Posco Louisiana Steel (HPLS) project.
Speaking to reporters after the groundbreaking ceremony in Donaldsonville, Louisiana, on September 4, Chung emphasized, "If we can research and produce materials with high quality and technology in collaboration with Posco, one of the world's top steel companies, it can be a win-win situation for both parties."
Chung explained the rationale behind the partnership with Posco, stating, "We have been collaborating with Posco in various fields, including future steel and next-generation batteries. I am pleased that this project presents a good opportunity for Posco to enter the U.S. market."
He also expressed optimism about the integrated process combining direct reduced iron (DRI) and electric arc furnaces. "Using electric arc furnaces allows us to produce low-carbon steel and reduce carbon emissions by about 70%. Applying DRI is a challenge for new technology, and if successful, it can be utilized elsewhere," he said.
Chung anticipates that local steel production will not only lower tariff burdens but also enhance vehicle quality. He noted, "While tariffs were not the primary goal, we need to produce low-carbon and high-value-added steel to improve the quality of vehicles produced here. I believe there are benefits for both sides, creating synergy."
However, he mentioned that quantifying the specific tariff reduction effects is challenging, stating, "It is difficult to convert it into monetary terms. Since tariffs are constantly changing, we want to focus on producing better products to enhance vehicle quality rather than fixate on tariffs."
Regarding the impact on the U.S. steel market, he said, "The U.S. currently imports about 20 million tons of steel. By producing high-value special steel and low-carbon steel here, we can cover 10 million tons of that, which will benefit the U.S. as well."
Chung also expressed interest in the potential application of humanoid robots like Atlas in U.S. steel production, stating, "I believe we should definitely apply them. I hope we can supply steel for rockets like SpaceX in the future."
* This article has been translated by AI.
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