Posted on 07 Jun 2024
Hyundai Steel is set to commence operations at its electric vehicle (EV) steel processing plant in Georgia, USA, this September, marking a significant milestone in the company's efforts to support the burgeoning EV market. This move comes in response to Hyundai Motor Group's announcement that it will begin EV production at its dedicated plant in Georgia, known as Hyundai Motor Group Metaplant America (HMGMA), in October this year, ahead of the originally scheduled first quarter of 2025.
The accelerated timeline for Hyundai Motor Group's EV production has necessitated an earlier start for Hyundai Steel's local processing plant. "Hyundai Steel is planning to start operating its EV-dedicated steel processing plant in Georgia this September," a company spokesperson confirmed. This new facility, known as the Steel Service Center (SSC), is being established to supply steel sheets specifically for EVs.
The SSC in Georgia will be Hyundai Steel's second coil center in the USA, following the completion of its Alabama plant. Initially slated for completion in August, the SSC is now expected to be operational ahead of schedule. The facility will be equipped with one slitter and two blanking lines, boasting an annual production capacity of 120,000 tons per slitter and 8 million sheets per blanking line. This capacity is anticipated to fully meet the HMGMA's annual EV production scale of 250,000 units.
"SSC will have the necessary equipment, including one slitter and two blanking lines," Hyundai Steel stated. "The annual production capacity is expected to be sufficient to support Hyundai Motor Group's HMGMA annual EV production scale of 250,000 units." The company also plans to supply EV steel sheets to other automakers in the future, further expanding its market reach.
Hyundai Steel's investment in the SSC is part of a broader strategy to strengthen its EV-related steel business in response to the expanding EV demand in Europe and the USA. The company has been at the forefront of technological advancements to support its EV business, including the mass production of 1.8GPa ultra-high-strength hot stamping steel sheets in 2022 and the world's first development of 1.0GPa-grade electric furnace hot stamping steel sheets for automobiles in 2023.
"Hyundai Steel is enhancing its EV-related steel business to respond to the growing EV demand in Europe and the USA," the spokesperson added. "We are also actively developing technology to support our EV business." This includes the recent completion of an order for new heat treatment equipment to be introduced at the Dangjin Steelworks' 2nd cold rolling plant, with plans to start commercial production of third-generation steel sheets in the second quarter of next year.
The establishment of the SSC in Georgia is a strategic move that aligns with Hyundai Motor Group's global expansion efforts, particularly in the North American market. The group's aggressive investments in the region, including the establishment of manufacturing plants and service centers, are aimed at catering to the increasing consumer demand for EVs and complying with stringent environmental regulations.
The global shift towards electric vehicles, driven by environmental concerns and government regulations aimed at reducing carbon emissions, has created a significant demand for specialized materials and components. Hyundai Steel's innovations, such as the development of ultra-high-strength hot stamping steel and electric furnace hot stamping steel, are pivotal in meeting these requirements, providing lightweight yet strong materials for better performance and safety.
The economic and industrial impact of Hyundai Steel's new plant in Georgia is also noteworthy. The facility is expected to create jobs, boost the local economy, and strengthen the industrial base, underscoring the importance of such investments in the broader context of the automotive and steel industries.
As Hyundai Steel prepares to start operations at its new plant, the company remains committed to supporting the EV market and advancing its technological capabilities. "We are dedicated to enhancing our EV-related steel business and developing the necessary technology to support this growing market," the spokesperson concluded. With the SSC in Georgia set to begin operations soon, Hyundai Steel is well-positioned to play a crucial role in the future of electric vehicle manufacturing.
Source:Business Korea
