JSW Steel Limited, India’s leading integrated steel producer, and POSCO Group, the South Korean steel major, have taken a major step towards a strategic collaboration in India. On 18 August 2025, the two companies signed a non-binding Heads of Agreement (HoA) to jointly explore the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant through a proposed 50:50 joint venture.

The HoA builds on the earlier Memorandum of Understanding (MoU) signed in October 2024 and provides the framework to advance into a detailed feasibility study, which will include evaluation of plant location, resource availability, environmental considerations, capital structure and long-term market requirements.

Given its mineral resource availability and strategic logistics network, the state of Odisha is being considered as one of the potential sites for the project.

Commenting on the proposed collaboration, Mr. Jayant Acharya, Joint Managing Director & CEO of JSW Steel, said that the partnership brings together JSW’s proven project execution capabilities and POSCO’s technological leadership, and is closely aligned with India’s “Atmanirbhar Bharat” vision, which focuses on enhancing self-reliance in key sectors such as steel. The proposed plant would strengthen India’s domestic steel manufacturing capacity while also creating an export-oriented production hub.

Mr. Lee Ju-tae, Representative Director and President of POSCO Holdings, added that India remains central to the future of global steel demand and that the collaboration reflects the long-term trust and shared vision between the two companies. He emphasised that the initiative reaffirms POSCO’s commitment to supporting India’s industrial and economic growth.

JSW Steel presently operates 35.7 MTPA of steelmaking capacity in India and the US, and is in the process of expanding to 43.4 MTPA in the next three years. It is globally recognised for its sustainable steelmaking practices and has committed to achieving net-zero emissions by 2050.

POSCO, ranked No.1 in the “World’s Most Competitive Steelmaker” rankings by World Steel Dynamics for 15 consecutive years, aims to transition to hydrogen-based, low-carbon steel production with the objective of achieving net-zero emissions by 2050.

The HoA signed today is non-binding and the final investment decision will be subject to completion of due diligence, feasibility assessments, regulatory approvals and board approvals of both companies. If approved, the collaboration would mark one of the largest foreign partnerships in the Indian steel sector and would support India’s sustained demand for high-quality steel across infrastructure, automotive and engineering sectors.

With steel demand in India projected to grow rapidly over the next decade, the partnership between JSW Steel and POSCO is expected to bring global innovation and scale to the sector and contribute significantly to India’s industrial growth and export potential.

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