Global Shifts and Breakthroughs in the Electrical Steel Industry

Published On : Nov 07, 2024

The electrical steel market is currently undergoing significant transformation, driven by rising demand in various sectors, especially in power generation and electric mobility. This blog explores a few recent developments in the global market, highlighting key acquisitions, expansions, and technological innovations that are shaping the industry landscape in 2024.

Global Shifts and Breakthroughs in the Electrical Steel Industry

Rising Focus on Energy Efficiency to Bolster Demand Worldwide

The effective transfer of electrical energy depends on electrical steel, especially types like Grain-Oriented Electrical Steel (GOES) and Non-Grain-Oriented Electrical Steel (NGOES). It is essential for improving energy efficiency due to its special qualities, which help lower energy losses in electric motors and transformers.

Electrical steel is considered a crucial component for producers striving to adhere to laws like the European Union's Ecodesign Directive. This rule encourages the use of materials that improve energy efficiency in power distribution networks, industrial machinery, and home appliances. The implementation of similar norms to boost energy efficiency is also anticipated to create new opportunities in India electrical steel market in future.

A Few Key Industry Developments in the Field of Electrical Steel

1. JFE Steel and JSW Steel Acquire ThyssenKrupp Electrical Steel India

In October 2024, Japan-based JFE Steel Corporation and Mumbai-based JSW Steel Limited announced their agreement of acquisition of 100% shares in ThyssenKrupp Electrical Steel India Private Limited. This strategic move aims to enhance production capabilities in India, particularly for grain-oriented electrical steel sheets. The acquisition is set to facilitate the supply of electrical steel to meet the rising demands of power generation and transmission in India. It will likely allow for an integrated manufacturing system from production to sales.

2. Mitsui & Co. Broadens Presence in Europe

In August 2024, Mitsui & Co., Ltd., based in Japan, established Polska-Mit Steel sp. z o.o. in Skarbimierz, Poland, to address the increasing demand for electrical steel sheets in Europe. Set to commence operations in April 2026, this facility will focus on producing motor cores for electric vehicles and transformers. It is likely to align with the broad decarbonization efforts and the shift toward sustainable material supplies in the region.

3. Nippon Steel Acquires United States Steel Corporation

In December 2023, Japan-based Nippon Steel Corporation (NSC) made headlines with its acquisition of United States Steel Corporation (U.S. Steel). This acquisition aims to enhance NSC’s manufacturing and technological capabilities, extending its geographic reach. By combining cutting-edge technologies from both companies, Nippon Steel seeks to accelerate innovation and deliver high-grade steel products, including electrical steel, to a global customer base.

4. United States Steel Corporation Unveils New Electrical Steel Line

Pennsylvania-based United States Steel Corporation opened a new non-grain-oriented electrical steel line at its Big River Steel facility in Osceola, Arkansas, in October 2023. Spanning nearly 2,333 feet and boasting an annual capacity of 200,000 metric tons, this line is a significant addition to the company’s manufacturing capabilities. It allows U.S. Steel to cater to the surging demand for electrical steel in various applications, including electric vehicles and renewable energy technologies.

5. United States Steel Corporation Introduces InduX™

In March 2023, United States Steel Corporation announced the launch of InduX™, a new electrical steel product designed for electric vehicles, generators, and transformers. This ultra-thin, lightweight steel possesses all necessary magnetic properties, positioning it as a key component in modern energy-efficient technologies. The introduction of InduX™ reflects the company’s commitment to innovation and responsiveness to changing market demands.

6. China Steel Corporation Extends its Production Capacity

In August 2023, Taiwan-based China Steel Corporation (CSC) signed a contract with London-based Primetals Technologies for an upgrade at its plant in Kaohsiung. This upgrade aims to increase the electrical steel production capacity, with operational expectations set for 2025. The move demonstrates CSC’s proactive approach to enhancing production capabilities in response to the high demand for electrical steel in the country.

7. ThyssenKrupp Steel Installs New Double Reversing Stand

ThyssenKrupp Steel, headquartered in Westphalia, completed the installation of a new double reversing stand in Bochum, Germany, in October 2023. This facility is designed to produce high-performance steels, including non-grain-oriented electrical steel, vital for electric mobility. The advanced technology incorporated in this stand will likely enhance ThyssenKrupp's capabilities in the production of electrical steel and support the company's strategic objectives in the electric mobility sector.

8. Strategic Cooperation between Vitesco Technologies and Baosteel

In August 2023, Germany-based Vitesco Technologies entered into a strategic cooperation agreement with Baosteel, headquartered in China. Both companies are focusing on the development of new materials based on high-grade non-oriented silicon steel. This partnership aims to promote sustainable mobility and advance e-mobility technology. It would also highlight the industry's shift toward collaboration to foster innovation and sustainability in electrical steel production.

Electrical Steel Manufacturers Focus on Sustainability to Stay Innovative

The electrical steel industry is experiencing rapid changes due to strategic acquisitions, technological innovations, and rising global demand, particularly in the electric mobility and renewable energy sectors. Companies like JFE Steel, JSW Steel, Nippon Steel, and United States Steel Corporation are at the forefront of this evolution, enhancing their production capabilities and contributing to a sustainable future. As the market continues to rise, it is important for key players to stay agile and innovative, ensuring they meet the demands of an increasingly electrified world.

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