JSW and POSCO sign for steel plant, EV batteries, and clean energy
30 Oct 2024
3 Min Read
CW Team
JSW Group and South Korea鈥檚 POSCO have signed a strategic agreement to collaborate in steelmaking, electric vehicle (EV) batteries, and renewable energy projects, marking POSCO鈥檚 fourth attempt to establish a foothold in India over the past 15 years. As part of the agreement, the two companies will initially set up a 5 million tonnes per annum (MTPA) integrated steel plant, with provisions for future capacity expansion. While the partnership details remain undisclosed, industry sources expect the plant to be located in Jagatsinghpur, Odisha, where JSW Utkal Steel has already secured regulatory approval for a 13.2 MTPA steel unit鈥攑rojected to be India鈥檚 largest single-location steel plant.
POSCO鈥檚 earlier attempts to enter the Indian market faced multiple setbacks. In 2010, it announced a joint venture with the Steel Authority of India (SAIL) for a steel unit in Bokaro, Jharkhand, but the partnership dissolved over shareholding disagreements. Similar plans to establish steel plants in Karnataka and Odisha were scrapped in 2013 and 2017, respectively, due to land acquisition issues, protests, and delays in regulatory approvals. Ironically, the Jagatsinghpur site now allocated to JSW was the same land POSCO abandoned in 2017.
Speaking on the collaboration, Sajjan Jindal, Chairman of JSW Group, emphasized that the partnership aligns with India鈥檚 rapid economic growth and JSW鈥檚 focus on sustainable development. "Our collaboration with POSCO strengthens our commitment to drive transformation across key sectors," Jindal stated. POSCO鈥檚 chairman, Chang In-hwa, added, "This partnership will not only contribute to the economic growth of both countries but also promote a more sustainable and eco-friendly future."
The partnership also aims to foster renewable energy projects and support the development of an EV ecosystem in India. Through its listed subsidiary JSW Energy, the group already has a significant presence in renewable energy, while its investment in MG Motor India, the domestic arm of China鈥檚 SAIC Motor, reflects its ambitions in the EV sector. JSW Steel also operates a joint venture with Japan鈥檚 JFE Steel for manufacturing grain-oriented electrical steel in India.
JSW Group, a $24 billion conglomerate, operates across multiple industries, including steel, energy, infrastructure, cement, and mobility. JSW Steel鈥檚 stock closed at Rs 959.35 on the NSE, down about 1%.
In related news, JSW Steel anticipates improved margins in the second half of FY25, following a recovery in steel prices from multi-year lows in September. Jayant Acharya, joint managing director at JSW Steel, expressed optimism, citing cost-cutting measures and new capacity expansions that will help boost sales and spread fixed costs. Acharya also noted that coking coal costs are expected to decline by $20-25 per tonne, further supporting the company鈥檚 margin recovery. "We are optimistic about H2," he said, predicting stronger demand and higher EBITDA driven by increased production capacity.
(Mint)
JSW Group and South Korea鈥檚 POSCO have signed a strategic agreement to collaborate in steelmaking, electric vehicle (EV) batteries, and renewable energy projects, marking POSCO鈥檚 fourth attempt to establish a foothold in India over the past 15 years. As part of the agreement, the two companies will initially set up a 5 million tonnes per annum (MTPA) integrated steel plant, with provisions for future capacity expansion. While the partnership details remain undisclosed, industry sources expect the plant to be located in Jagatsinghpur, Odisha, where JSW Utkal Steel has already secured regulatory approval for a 13.2 MTPA steel unit鈥攑rojected to be India鈥檚 largest single-location steel plant.
POSCO鈥檚 earlier attempts to enter the Indian market faced multiple setbacks. In 2010, it announced a joint venture with the Steel Authority of India (SAIL) for a steel unit in Bokaro, Jharkhand, but the partnership dissolved over shareholding disagreements. Similar plans to establish steel plants in Karnataka and Odisha were scrapped in 2013 and 2017, respectively, due to land acquisition issues, protests, and delays in regulatory approvals. Ironically, the Jagatsinghpur site now allocated to JSW was the same land POSCO abandoned in 2017.
Speaking on the collaboration, Sajjan Jindal, Chairman of JSW Group, emphasized that the partnership aligns with India鈥檚 rapid economic growth and JSW鈥檚 focus on sustainable development. Our collaboration with POSCO strengthens our commitment to drive transformation across key sectors, Jindal stated. POSCO鈥檚 chairman, Chang In-hwa, added, This partnership will not only contribute to the economic growth of both countries but also promote a more sustainable and eco-friendly future.
The partnership also aims to foster renewable energy projects and support the development of an EV ecosystem in India. Through its listed subsidiary JSW Energy, the group already has a significant presence in renewable energy, while its investment in MG Motor India, the domestic arm of China鈥檚 SAIC Motor, reflects its ambitions in the EV sector. JSW Steel also operates a joint venture with Japan鈥檚 JFE Steel for manufacturing grain-oriented electrical steel in India.
JSW Group, a $24 billion conglomerate, operates across multiple industries, including steel, energy, infrastructure, cement, and mobility. JSW Steel鈥檚 stock closed at Rs 959.35 on the NSE, down about 1%.
In related news, JSW Steel anticipates improved margins in the second half of FY25, following a recovery in steel prices from multi-year lows in September. Jayant Acharya, joint managing director at JSW Steel, expressed optimism, citing cost-cutting measures and new capacity expansions that will help boost sales and spread fixed costs. Acharya also noted that coking coal costs are expected to decline by $20-25 per tonne, further supporting the company鈥檚 margin recovery. We are optimistic about H2, he said, predicting stronger demand and higher EBITDA driven by increased production capacity.
(Mint)
Next Story
GM, LG to Produce Low-Cost EV Batteries with LMR Chemistry
General Motors (GM) and LG Energy Solution will begin commercial production of lithium manganese-rich (LMR) battery cells in the United States from 2028. These lower-cost cells are designed to enhance electric vehicle (EV) affordability while delivering over four hundred miles of range on a single charge.The new prismatic LMR cells will be produced at Ultium Cells joint-venture plants in Ohio and Tennessee. GM says the design reduces battery pack parts by over fifty per cent, contributing to its goal of achieving cost parity between EVs and internal combustion engine vehicles.With twelve EV mo..
Next Story
DRDO Develops Polymeric Membrane for Sea Water Desalination
The Defence Research and Development Organisation (DRDO) has developed an indigenous nanoporous multilayered polymeric membrane for high-pressure sea water desalination. The breakthrough, led by the Kanpur-based Defence Materials Stores and Research and Development Establishment (DMSRDE), is tailored to suit Indian Coast Guard operational needs.The membrane addresses the challenge of chloride ion exposure in saline environments, ensuring better performance stability. Developed within eight months, the technology is intended for use in desalination units onboard Offshore Patrolling Vessels.Init..
Next Story
L&T Wins Two Govt Contracts in Delhi and Andhra
Larsen and Toubro (L&T) has secured two major construction contracts from the Union government and the Andhra Pradesh government. Both projects are expected to be completed within eighteen months.The first contract, awarded by the Union Public Works Department, involves construction of buildings number six and seven at the Union Secretariat in New Delhi. Each structure will include one basement, two podiums, an upper ground floor, and six additional floors. The work is being executed under an engineering, procurement and construction (EPC) order.The second contract covers the design and co..
