JSW Group has signed a memorandum of understanding with Korea’s POSCO Group (POSCO) to set up a 5 mtpa steel plant, besides venturing into the battery materials and renewable energy sectors.

The partnership will focus on establishing an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (mtpa).

Additionally, the energy transition is propelling the growth of India’s renewable energy and battery materials sectors. The two groups will also explore collaborations in the areas of battery materials related to electric vehicles and renewable energy to meet the captive requirements of the proposed integrated steel plant, JSW Steel said in a statement on Tuesday.

• Also read: JSW Infrastructure Q2 PAT up 46% on increased cargo handled

Sajjan Jindal, Chairman, JSW Group, said the MoU with POSCO involves collaboration for renewable energy for a modern integrated steel plant and for setting up an electric vehicle ecosystem in India.

Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond, he added.

Chang In-hwa, Chairman of POSCO, said the collaboration would significantly contribute to the economic development of Korea and India and boost joint efforts toward a more environmentally friendly and sustainable future.

• Also read: Cheaper Chinese steel imports hit JSW Steel’s second quarter profit

In 2005, Korean steel giant POSCO signed a memorandum of understanding with the Odisha state government to build a $12 billion steel plant.

However, the company abandoned this project due to a prolonged delay in obtaining approvals.

Besides Odisha, POSCO India has project sites in Karnataka and Maharashtra.