JSW Steel Invests $663M for a Joint Venture With Japan's JFE Steel in India

JSW Steel and JFE Steel Corporation have formed a joint venture to manufacture grain-oriented electrical steel in India. Due to the increasing demand for this soft magnetic material in the EV sector, the global market size for grain-oriented electrical steel (GOES) was predicted to reach about $18.81 billion by 2030.

According to Reuters, JSW Steel and JFE Steel agreed to invest 55 billion rupees, or about $663 million, in their JV in India. The former confirmed their planned investments on Tuesday, Feb. 13.

The Indian Joint Venture

It was reported that the joint venture of JSW Steel and Japan-based JFE Steel was initially signed in August 2023. In the initial agreement, the companies said they would also set up a production facility in the Indian state of Karnataka. Operations in this plant are expected to begin in the fiscal year 2027.

Moreover, JSW said it plans to increase the plant's capacity to meet the growing demand for GOES in India. This crucial component is typically used in manufacturing various transformers, such as power transformers, distribution transformers, and ordinary small transformers.

Groundbreaking for the JV Plant

Money Control reported that steel manufacturing giants finally started the construction of their JV plant. They held a groundbreaking ceremony on the site on Feb. 12. The companies will each hold 50% of the joint venture company, which they have named JSW JFE Electrical Steel Private Limited.

"This collaboration is a milestone development, as it would be the first company to have end-to-end manufacturing of grain-oriented electrical steel products in India," JSW Steel said in a statement. "The JV aspires to cater to the surging domestic demand for grain-oriented electrical steel and contribute significantly to the country's energy infrastructure."

Photo by: JSW Steel Media Room