JSW Steel, POSCO Move Closer to JV with Agreement for Feasibility Study on 6 MTPA Plant

JSW Steel of India and the POSCO Group of South Korea entered into a non-binding Heads of Agreement (HoA) for the joint evaluation of the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant in India. This HoA is a significant step toward furthering cooperation between two of the foremost steelmakers in the world.

Following the signing of the MoU in October 2024, the agreement sets out broad terms for the envisaged 50:50 joint venture, whereafter both companies would conduct a detailed feasibility study to verify key aspects of the project concerning site location, investment structure, and resource access.

Odisha seems to be the most favored option as a plant site due to natural resource reserves, port connectivity, and favorable infrastructure. The feasibility studies will take into account such positives, in addition to environmental clearances, raw material linkages, and market access, before making the final call.

The cooperation under consideration would reveal gradually emerging synergies between JSW Steel, India’s largest steel producer by capacity, and POSCO, quite favored among the advanced technologies in steel-making globally. According to analysts in the industry, the proposed plant can do wonders for augmenting steel production capacity in India while also attracting advanced technologies for making green and sustainable steel.

The Indian government has been on an accelerated path to enhance domestic steel capacity to meet its target of 300 MTPA by 2030. Given the ever-increasing demand from infrastructure, construction, and automotive sectors, this proposed joint venture could certainly help in bridging some of these supply gaps, while also minimizing import dependency.

The HoA is considered non-binding, but it simply highlights the bonne volonté of both parties to move beyond discussions toward actual project planning. If and when the transaction is finalized, it is expected to create massive investments, thousands of jobs, and technology transfers, thus meeting India’s aspiration of becoming a global steel hub.

The feasibility study is expected to be conducted in detail over the subsequent several months, after which an announcement will be made on the final investment decision.