JSW Steel Ltd has entered into a Memorandum of Understanding (MoU) with POSCO Group, outlining a framework for collaboration in the steel, battery materials, and renewable energy sectors in India.
The Company has also signed a joint venture agreement to develop an integrated steel plant in Odisha with an initial capacity of 5 million tonnes per annum (MTPA), with both partners holding equal stakes of 50 per cent each.
Multi-sector collaboration framework
Beyond steel, the two groups will explore collaborations in battery materials for electric vehicles and renewable energy solutions to meet the captive requirements of the proposed integrated steel plant.
JSW Steel said its strong manufacturing presence and project execution capabilities, combined with POSCO’s technological expertise, would create a platform for developing advanced solutions for India’s steel and energy sectors.
JV structure and investment details
“This MoU with POSCO marks a significant step forward in our journey to contribute to the Indian steel industry. As one of the world’s fastest-growing economies, India presents tremendous opportunities for sustainable growth, and our partnership with POSCO strengthens JSW’s commitment to drive that transformation,” JSW Group, Chairman, Sajjan Jindal said.
“This JV also entails collaboration for renewable energy for a state-of-the-art 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.
“We are delighted to strengthen our ties with JSW Group. 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,” POSCO Group, Chairman, Chang In-hwa said.
In a regulatory filing, JSW Steel said it has entered into an agreement with POSCO Ltd and POSCO India Pvt Ltd to set up a greenfield 6 MTPA integrated steel plant in Odisha through its wholly owned subsidiary Saffron Resources Pvt Ltd for a total consideration of ₹508.8 crore.
Capacity and strategic significance
JSW Steel Ltd currently has a crude steel production capacity of 35.7 MTPA and aims to scale up to 50 MTPA in India by FY31.
POSCO Group, headquartered in Pohang, South Korea, has a steel manufacturing capacity of 45 MTPA and is the largest steel producer in the country.
Technology and future outlook
The joint venture is expected to deepen strategic ties between the two steel producers. The partnership will enable JSW Steel to access advanced technologies and manufacture high-grade steel products for automotive and other applications.
The collaboration is also expected to support the development of a sustainable manufacturing ecosystem, integrating steel production with renewable energy and electric mobility value chains.