South Korea’s Hyundai Steel will invest $5.8 billion along with Hyundai Motor Group to build a steel plant in the U.S. state of Louisiana with an annual capacity of 2.7 million tonnes, the company said in a regulatory filing on Tuesday.

Hyundai Steel shares initially jumped more than 5% on the news but reversed early gains to end 7% lower as U.S. President Donald Trump praised the company’s plan.

Hyundai Steel’s proposed new U.S. steel plant is part of Hyundai Motor Group’s plan to invest $21 billion in the United States, which was announced by the South Korean company’s chairman with Trump at the White House on Monday.

The move is seen as an effort by Hyundai to shield itself from U.S. tariffs on steel and cars, but it is not clear whether this will help secure exemptions for Hyundai and South Korea.

Trump has threatened to impose reciprocal tariffs on numerous countries on April 2, potentially targeting South Korea that has a large trade surplus with the United States.

Shares of Hyundai Motor and affiliate Kia Corp, which are expected to source steel from the proposed factory, rallied. Hyundai Motor shares ended up 3.3% after rising as much as 7.5% to their highest since October 2024. Kia closed up 2.1%.

Analysts have, however, expressed concerns about how Hyundai Steel, which has billions of dollars in debt, would fund the construction of the factory. There are also execution risks associated with the new technology of using electric furnaces to produce automotive steel, they said.

“It is not clear whether the investment will benefit Hyundai Steel in the future,” said Lee Tae-hwan, an analyst at Daishin Securities.

Hyundai Steel said it will cover half the costs, with the remainder invested by its parent company and other investors.

The factory, which will make automotive steel, will be constructed from 2026 to 2029, the company said.

Hyundai Steel is an affiliate of automakers Hyundai Motor and Kia Motors which have factories in the United States.

—Hyunjoo Jin and Jihoon Lee, Reuters

The Michigan men's basketball team wasn't successful in clinching a spot in the Elite Eight, falling to Auburn Friday night in Sweet 16.

The No. 5 seed Wolverines (27-9) lost 65-78 to No. 1 seed Auburn Tigers (30-5) in Atlanta, Georgia. The Tigers will take on either No. 2 seed Michigan State (29-6) on Sunday in an Elite 8 game. 

How far has Michigan made it in March Madness?

Michigan has claimed one national championship when it downed Seton Hall 80-79 in overtime in the 1989 title game. The Wolverines also posted runner-up finishes in 1992, 1993, 2013 and 2018 but had to vacate their 1992 and 1993 Final Four runs because of an NCAA violations scandal involving booster Ed Martin. 

The Wolverines have made 31 NCAA Tournament appearances and eight Final Four appearances (1964, 1965, 1976, 1989, 1992, 1993, 2013 and 2018). Michigan's first tournament bid came back in 1948. 

Michigan has posted a 68-30 record (including wins later vacated by the NCAA) in the NCAA Tournament. The Wolverines have reached at least the Sweet 16 round in each of their last five NCAA tournament appearances.