POSCO Returns to India with Plans for 5 MTPA Steel Plant in Partnership with JSW Steel.

Nearly 19 years after scrapping its initial plans, South Korean steel giant POSCO Group has returned to India in partnership with JSW Group to establish an integrated steel plant with a 5 million tonnes per annum (mtpa) capacity. The collaboration will also extend into renewable energy and battery materials to support India’s growing EV ecosystem.

In 2005, POSCO had signed a memorandum of understanding (MoU) with the Odisha government to build a 10 mtpa steel plant with an investment of $12 billion. However, the project was shelved due to delays in obtaining approvals. In a twist, the Odisha government recently allocated 2,900 acres of the originally acquired land to JSW Steel, where the company plans to build a phased 10 mtpa steel plant. It remains unclear if the POSCO-JSW 5 mtpa project will be situated on this site.

Apart from the steel plant, the joint venture will explore investments in renewable energy and battery materials, with POSCO collaborating with JSW Energy on green projects. The partnership aims to support energy transition efforts, particularly around electric vehicle battery materials and renewable energy to meet the steel plant’s energy needs.

JSW Group Chairman Sajjan Jindal emphasized that the MoU with POSCO is not only focused on creating a high-tech, sustainable steel plant but also on contributing to the EV sector in India. Earlier this year, JSW Group announced a ₹40,000 crore investment plan to establish a 50 GWh EV battery manufacturing facility.

POSCO Chairman Chang In-hwa expressed optimism that this collaboration would boost the economies of both Korea and India, promoting sustainability in the manufacturing sector.

HBL