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Nearly 19 years after dropping plans to set up an integrated steel plant, South Korean steel major POSCO Group has joined hands with JSW Group to set up a steel plant of 5 mtpa and explore opportunities in battery materials and renewable energy sectors.
The partnership will focus on setting up an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (mtpa).
In 2005, the Korean steel giant POSCO signed a memorandum of understanding with the Odisha government to construct 10 mtpa steel plant with an investment of $12 billion.
However, the company dropped the plan due to a prolonged delay in getting approvals.
Incidentally, the Odisha government has allocated 2,900 acres acquired for POSCO to JSW Steel for its proposed 10 mtpa steel plant. JSW Steel is planning to build the new Odisha plant in phases. It is not yet clear whether the proposed 5 mtpa of JSW Steel and POSCO will come up on the same land in Odisha.
Currently, POSCO has a steel rolling plant in Maharashtra and steel processing centres in Delhi, Ahmadabad, Pune, Hyderabad and Chennai.
Other proposals
Besides the steel plant, both the joint venture partners will explore investment opportunity in energy transition projects that is propelling growth of renewable energy and battery material sectors in India. POSCO will join hands with JSW Energy for green energy projects.
The two Groups will also explore collaborations in the areas of battery materials related to electric vehicles and renewable energy for meeting the captive requirements of the proposed integrated steel plant, said JSW Steel in a statement on Tuesday.
- Also read: JSW MG Motor, Vision Mechatronics to repurpose used EV batteries for large-scale energy storage
Sajjan Jindal, Chairman of JSW Group, said the MoU with POSCO entails collaboration for renewable energy for a modern integrated steel plant and for setting up an EV ecosystem in India.
“Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond,” he added.
Chang In-hwa, Chairman of POSCO said the collaboration will contribute significantly to the economic development of Korea and India and drive joint efforts towards a more eco-friendly and sustainable future.
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