JFE Steel, the second-largest steelmaker in Japan, is set to establish a joint venture in India for the production of electrical steel, a critical material used in power infrastructure.
Through a 50-50 joint venture with JSW Steel, JFE will install production equipment for electrical steel sheet at a steelworks facility. The joint venture is expected to commence full operations by fiscal year 2027.
This marks JFE's first venture into producing electrical steel outside of Japan. With India's population projected to grow significantly, the demand for power infrastructure is expected to rise, creating a strong market for electrical steel sheets used in transformers and other equipment.
In addition to the India venture, JFE also announced plans to expand the production of high-grade non-oriented electrical steel sheet used in electric vehicle (EV) motors at its West Japan Works facility. An investment of approximately 46 billion yen ($332 million) will be made in new equipment, scheduled to be operational by fiscal year 2026. These investments aim to meet the increasing demand for electrical steel driven by the growing popularity of EVs.
Rival company Nippon Steel has also announced its expansion plans for electrical steel production, investing 90 billion yen to establish new facilities in Japan. The expanded capacity is anticipated to begin full operations in the first half of fiscal year 2027, increasing Nippon Steel's production capacity by about fivefold.
As the demand for electrical steel continues to rise, both JFE Steel and Nippon Steel are positioning themselves to cater to the evolving needs of the power infrastructure and EV markets, ensuring a steady supply of this vital material.
Source: asia.nikkei.com