India’s steel industry is set for another significant leap forward as JSW Steel and South Korea’s POSCO Holdings Inc. announced on Monday their plans to jointly explore building a massive integrated steel plant in the country. The announcement, which came on August 18, 2025, has already sent ripples through the global steel market and sparked interest among industry watchers, investors, and policymakers alike.
According to Korea JoongAng Daily, the plant under consideration would have a capacity of 6 million tonnes (6.6 million tons) per annum, making it one of the largest such projects in the region. While the exact location and financial details have yet to be finalized, both companies have indicated that Odisha is a prime candidate. Odisha’s rich resource base and logistical advantages make it a natural choice for heavy industry, and both firms are keenly aware of its potential.
The latest move builds on a growing partnership between the two steel giants. As reported by RTTNews, the companies signed a non-binding Heads of Agreement (HoA) on Monday, laying out a broad framework for a proposed 50:50 joint venture. This agreement follows a Memorandum of Understanding inked in October 2024, signaling a deepening of strategic ties between the two global leaders.
The HoA was signed in Mumbai, with high-level representation from both sides. Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director and CEO of JSW Steel, were present for the occasion, underscoring the importance of the collaboration. Both companies have committed to conducting a detailed feasibility study as the next step. This study will examine the plant’s location, investment structure, resource requirements, and other key factors critical to the project’s success.
Industry observers are watching closely as Odisha emerges as a leading contender for the new facility. According to Reuters, the state’s resource base and logistical strengths make it particularly attractive. Odisha has long been a hub for mineral extraction and processing, and its proximity to ports and railways offers logistical advantages that can’t be ignored. The proposed plant’s scale would also have a significant impact on local employment and infrastructure development, potentially transforming the region’s industrial landscape.
This is not the first time JSW Steel and POSCO have looked to Odisha for expansion. Last year, the companies struck a deal to set up another integrated steel plant in the state, with an initial capacity of 5 million tonnes per annum. In November 2024, Reuters reported that the firms planned to invest 650 billion rupees (about $7.44 billion) in that project. The new 6 MTPA plant would represent an even larger commitment, though the final investment figure has not yet been disclosed.
The growing partnership isn’t limited to steelmaking alone. JSW Steel said last year that it would also explore collaboration with POSCO on battery materials for electric vehicles and renewable energy. This broader strategic vision reflects both companies’ recognition of the shifting global landscape, where decarbonization and new energy technologies are becoming increasingly central to industrial planning.
The announcement has already had an impact on the financial markets. RTTNews noted that, on the day of the announcement, POSCO was trading 1.30% lower at KRW 303,500 on the Korean Stock Exchange, while JSW Steel saw its shares rise 2.42% to 1,070.80 on the NSE. The market’s reaction reflects a mix of optimism about the potential for growth and the usual caution that comes with large-scale industrial projects.
For JSW Steel, India’s most valuable steelmaker, the partnership with POSCO is a logical next step in its ongoing expansion. The Indian steel industry has been on a growth trajectory for several years, buoyed by rising domestic demand, infrastructure projects, and government support. By joining forces with POSCO, JSW gains access to advanced technology, global expertise, and new opportunities for innovation.
POSCO, for its part, brings decades of experience as one of the world’s leading steel producers. The company’s decision to partner with JSW reflects its confidence in India’s market potential and its commitment to expanding its global footprint. The strategic alliance is also a response to the evolving dynamics of the steel industry, where scale, efficiency, and sustainability are increasingly important.
The proposed plant is expected to be fully integrated, meaning it will handle everything from raw material processing to finished steel products. This approach not only improves efficiency but also allows for greater flexibility in responding to market demands. It’s a model that has served both companies well in the past and is likely to be a key factor in the project’s long-term success.
As the feasibility study gets underway, both companies will need to navigate a complex set of challenges. These include securing necessary permits, addressing environmental concerns, and ensuring that the project delivers tangible benefits to local communities. The scale of the investment also means that both firms will be looking for strong support from state and central governments, as well as from local stakeholders.
Yet, the rewards could be substantial. A plant of this size would create thousands of jobs, boost ancillary industries, and contribute significantly to India’s steel output. It would also position both JSW Steel and POSCO as key players in the next phase of India’s industrial development, with the potential to shape the sector’s direction for years to come.
There’s also the broader context to consider. The global steel industry is undergoing rapid transformation, driven by technological innovation, environmental pressures, and shifting patterns of demand. Projects like the one proposed by JSW Steel and POSCO are not just about making more steel—they’re about building the infrastructure and capabilities needed for a low-carbon, high-tech future.
According to the companies, the next several months will be critical as they work through the details of the feasibility study and engage with stakeholders. While much remains to be decided, the intent is clear: both JSW Steel and POSCO see India as a vital market and a key arena for their future growth. The coming years will reveal whether this bold partnership can deliver on its ambitious promise.
With the ink barely dry on the Heads of Agreement, the steel world is watching—and waiting—to see what comes next for these two industry giants in India.