Japanese steelmakers JFE Holdings and Nippon Steel Corporation are jointly investing a total JPY 172 billion ($1.25 billion) to increase output of electrical steel, which is used in electric vehicle motors, and are looking to raise their investment further amid customer demand as the transition to electric vehicles has gathered pace, as reported by Bloomberg.
The companies are also looking to expand outside of Japan, following capacity increases by 2024. In particular, JFE Holding is considering options such as building a plant in North America, where electrical steel demand will be strong, while Nippon Steel stated that its next investment is more likely to be in Japan.