South Korean steel and chemicals group Posco Holdings Inc. and Indian industrial conglomerate JSW Group this week signed a preliminary agreement to collaborate on expanding India’s steel industry and developing the country’s electric vehicle (EV) battery supply chain and renewable energy sector, according to local reports.
The two companies have agreed to jointly invest ‘billions of US dollars’ to build an integrated steel plant with a production capacity of five million tons per year, with provisions to expand this capacity later. They are understood to have agreed to contribute 50% each to the investment.
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By GlobalDataDemand for steel is growing rapidly in India’s fast-expanding economy, including demand for automotive steel and construction materials. Posco cited a study by consulting firm World Steel Dynamics which forecasts steel demand in the country will more than triple to 400 million tons per year by 2047 from 120 million tons last year.
The two companies have also agreed to collaborate in developing a supply chain for electric vehicle batteries in India and to help develop the country’s renewable energy sector.
Posco already has a steel rolling plant in the Indian state of Maharashtra, producing cold-rolled steel sheets for local automakers including Maruti Suzuki, Hyundai Motor and Kia Corporation. The facility relies on raw steel imported from South Korea.
The company had previously agreed to invest US$12 billion to build an integrated steel plant in India, but canceled the plan following local protests. In 2022, it agreed to partner with India’s Adani Group, only to change its choice of partner to JSW Group.
Posco Group Chairman Chang In-hwa said in a statement: “We hope the partnership with JSW Group will contribute to the economic development between South Korea and India while leading the transition to an eco-friendly era.”
