JSW Group and South Korea’s POSCO have entered into a strategic partnership to collaborate on steelmaking, electric vehicle (EV) batteries, and renewable energy projects. This agreement marks POSCO’s fourth attempt to establish a presence in India over the past 15 years. As part of the deal, the companies will initially build a 5 million tonnes per annum (MTPA) integrated steel plant, with potential for future capacity expansion. Although specifics of the partnership remain undisclosed, sources suggest the plant will be located in Jagatsinghpur, Odisha, where JSW Utkal Steel has already secured regulatory approval for a 13.2 MTPA steel unit, expected to be the largest single-location steel plant in India.
POSCO has faced setbacks in its attempts to enter the Indian market. In 2010, it partnered with Steel Authority of India (SAIL) to set up a steel unit in Bokaro, Jharkhand, but the partnership dissolved due to disagreements over shareholding. Similar attempts to build plants in Karnataka and Odisha were also abandoned in 2013 and 2017, respectively, due to issues with land acquisition, protests, and delays in regulatory approvals. Ironically, the Jagatsinghpur site allocated to JSW was the same land POSCO had abandoned in 2017.
JSW Group Chairman, Sajjan Jindal, highlighted that the partnership aligns with India’s growing economy and the group’s focus on sustainable development. “Our collaboration with POSCO strengthens our commitment to drive transformation across key sectors,” Jindal remarked. POSCO Chairman Chang In-hwa echoed this sentiment, adding that the partnership would contribute to economic growth in both countries while promoting a sustainable and eco-friendly future.
In addition to the steel plant, the collaboration aims to foster renewable energy initiatives and develop the EV ecosystem in India. Through its subsidiary, JSW Energy, the group already has a significant footprint in renewable energy, and its investment in MG Motor India, a subsidiary of China’s SAIC Motor, underscores its ambitions in the EV sector. JSW Steel also operates a joint venture with Japan’s JFE Steel for manufacturing grain-oriented electrical steel in India.
JSW Group, a $24 billion conglomerate, operates across industries including steel, energy, infrastructure, cement, and mobility. Meanwhile, JSW Steel has projected improved margins for the second half of FY25, as steel prices recover from multi-year lows seen in September. Joint Managing Director Jayant Acharya expressed optimism, citing cost-cutting initiatives and capacity expansions that will help boost sales and spread fixed costs. Additionally, the company expects a reduction in coking coal costs, which will support margin recovery.
