JSW Steel aims to increase capacity to 50 MTPA by 2031.
29 Oct 2024 | 16654 Views | By Autocar Professional Bureau
Indian conglomerate JSW Group signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (MTPA). The agreement, signed at JSW’s Mumbai headquarters, also outlines potential collaborations in battery materials and renewable ...
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Indian conglomerate JSW Group signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (MTPA). The agreement, signed at JSW’s Mumbai headquarters, also outlines potential collaborations in battery materials and renewable energy.
With steel demand in India growing faster than the country’s GDP, JSW and POSCO aim to capitalize on this opportunity by focusing on integrated steel production, as well as exploring joint projects in battery materials for electric vehicles and renewable energy. The two companies said that the renewable energy ventures will help meet the proposed steel plant’s captive power requirements.
JSW Group Chairman Sajjan Jindal said the MoU with POSCO marks a significant step forward in their journey to contribute to the Indian steel industry.“Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond,” he said.
POSCO Chairman Chang In-hwa said, “This collaboration will contribute significantly to the economic development of Korea and India and drive our joint efforts towards a more eco-friendly and sustainable future.”
The MoU also underscores the commitment of both groups to enhancing India’s steel production capacity and supporting sustainability goals in both India and Korea.
JSW Group has been steadily expanding its steel production capacity within India and internationally to meet growing demand. As of 2024, JSW Steel has increased its capacity to 35.7 million tonnes globally, positioning it as one of the largest steel producers. Meanwhile, the group has also been diversifying into renewable energy, electric vehicles, and battery materials, which aligns with India’s national goals to reduce carbon emissions and promote green energy.
The partnership will not only increase India’s steel output but also address critical supply chain needs for battery materials and renewable energy – two areas the Indian government is actively promoting through various policies and incentives.
The strategy aligns with JSW Energy's broader initiative to shift towards renewable energy and strengthen its storage capabilities. The company plans to invest approximately Rs 15,000 crore during the current financial year. In April, JSW Energy announced plans to raise Rs 5,000 crore in stages by issuing shares to high-net-worth investors through a Qualified Institutional Placement program.