JSW Steel, India’s leading steel producer, and South Korea’s POSCO Group have signed a non-binding Heads of Agreement to jointly explore establishing a 6 million tonnes per annum (MTPA) integrated steel plant in Odisha, India, through a proposed 50:50 joint venture. This strategic partnership, announced on August 18, 2025, aims to leverage both companies’ strengths to meet surging domestic and global steel demand, with a focus on supporting India’s industrial growth and export potential.

Indo-Korean Steel Partnership: Key Details

Strategic Collaboration

JSW Steel, with its proven execution capabilities and strong domestic footprint, is joining forces with POSCO Group, renowned for its technological leadership in steelmaking, to create a globally competitive steel manufacturing hub. The partnership is built on mutual trust and a shared long-term vision, as emphasized by executives from both organizations.

“India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India's industrial growth while creating long-term value for both organizations.” — Lee Ju-tae, President, POSCO Holdings

Project Scope and Investment

Plant Capacity: 6 MTPA integrated steel facility.
Location: Odisha, India is the preferred site, chosen for its rich natural resources and logistical advantages, though the final site will be determined after a detailed feasibility study.
Investment Structure: The venture is expected to be a 50:50 joint venture between JSW Steel and POSCO Group.
Estimated Investment: Previous reports suggest an investment of approximately ₹65,000 crore (about $6 billion).

Next Steps

Both companies will conduct a comprehensive feasibility study to finalize the plant’s location, investment terms, resource requirements, and regulatory approvals before making a final investment decision.

Industrial Impact

Boost to India’s Steel Capacity: The project aligns with India’s strategic push for self-reliance in steel production and infrastructure expansion.
Support for Downstream Industries: The integrated facility will cater to both domestic and international markets, enhancing India’s export potential.
Technological Advancement: POSCO’s expertise is expected to introduce advanced steelmaking technologies to India.

Background and Context

This agreement builds on a memorandum of understanding signed in October 2024, where JSW and POSCO had agreed to collaborate on a 5 MTPA project and explore opportunities in renewable energy and battery materials for electric vehicles. The current pact increases the proposed capacity to 6 MTPA, reflecting the rapid growth in Indian steel demand and the country’s ambitions to become a global industrial hub.

Comparison Table: JSW Steel vs POSCO Group

Company Profiles

Company	Country	Capacity (MTPA)	Key Strengths
JSW Steel	India	35.7	Execution, domestic reach
POSCO Group	South Korea	Global leader	Technology, innovation

Joint Venture Highlights

Aspect	Details
Plant Capacity	6 MTPA
Location	Odisha (preferred)
Investment	₹65,000 crore (approx. $6 billion)
Ownership	50:50 JSW Steel & POSCO Group

Frequently Asked Questions

What advanced technologies might POSCO bring to the new plant?
POSCO is likely to introduce cutting-edge steelmaking processes, automation, and sustainability practices to enhance efficiency and product quality.

How will the joint venture impact local employment in Odisha?
The project is expected to generate thousands of direct and indirect jobs, boosting regional economic development.

Are there plans to expand into renewable energy or battery materials?
Both companies have previously discussed exploring opportunities in renewable energy and battery materials for electric vehicles.

What challenges could delay the project’s completion?
Potential hurdles include land acquisition, regulatory approvals, and securing raw material supply chains.

Will the plant focus on domestic consumption or exports?
The facility aims to serve both domestic and international markets, supporting India’s export ambitions.

Key Takeaways

The JSW Steel-POSCO partnership represents a significant milestone in Indo-Korean industrial cooperation, poised to transform India’s steel landscape and support its rise as a global manufacturing hub. As feasibility studies progress, stakeholders will closely watch how this venture shapes the future of steel production, job creation, and technological advancement in India. Readers interested in industrial growth or investment opportunities should monitor further developments in this landmark collaboration.