South Korea’s POSCO Group plans to invest in Hyundai Steel’s proposed 2.7 million mt/year steel mill in the US state of Louisiana, POSCO said April 21.
POSCO signed a memorandum of understanding with Hyundai Motor Group on the same date “for mutual cooperation in the steel and secondary battery sectors,” it said.
Hyundai Motor plans to invest $21 billion in the US from 2025 to 2029 to expand its US auto production and for its steel affiliate, Hyundai Steel, to start up an electric arc furnace steel mill in Louisiana as early as 2029.
“… as the first fruit of the cooperation between the two companies, POSCO Group will participate in the steel investment in the US recently announced by Hyundai Motor Group,” POSCO said without disclosing the value of its investment.
“Through this, POSCO Group will be able to secure a bridgehead for entering the North American steel market, which has been limited by protectionist trade barriers for the past 10 years,” POSCO said.
POSCO’s investment comes after the US imposed a 25% import tax on all steel and aluminum entering the country, effective March 12.
“POSCO … will be able to supply materials smoothly to the US and Mexico through this joint investment in the Louisiana steel mill,” it said.
For the secondary battery materials sector, POSCO will build a stable supply chain with Hyundai Motor.
“… the plan is for the two companies to find sustainable collaboration points in areas such as supply chain construction and next-generation material development by synergizing POSCO Group’s secondary battery material business competitiveness, including lithium and cathode/positive electrode materials, with Hyundai Motor Group’s eco-friendly future mobility technology,” POSCO said.
Currently, POSCO Future M, the group’s battery materials unit, has a joint venture called Ultium CAM with General Motors.
“POSCO Group is building a secondary battery material value chain with the ability to produce and recycle anode and cathode materials based on global lithium salt lakes and mines, as well as a portfolio of steel materials for future mobility such as ‘Giga Steel’ for automotive steel sheets that take advantage of high strength and light weight, battery packs, and electric vehicle drive motor materials,” POSCO said.
By 2030, POSCO projects its global lithium production capacity to hit 423,000 mt/year, with cathode active materials at 1 million mt/year and anode active materials at 370,000 mt/year.
Platts, part of S&P Global Commodity Insights, assessed battery-grade lithium carbonate at $9,000/mt on April 17, unchanged day over day but down $200/mt week over week, and lithium hydroxide at $8,900/mt, up $50/mt day over day but down $200/mt week over week.
Author Clement Choo
