Bloomberg reported that Japan’s two biggest steelmakers Nippon Steel and JFE Holdings, which are already spending a combined JPY 172 billion (USD 1.3 billion) to lift output of electrical steel used in EV motors, may accelerate investment as electrical steel is becoming increasingly sought after as the shift to electric vehicles gathers pace. Nippon Steel’s Executive Vice President Mr Takahiro Mori said “Considering the trajectory of the EV transition, it looks like supply will be insufficient. Customers are asking us to increase the capacity, so additional steps are now under consideration. Nippon Steel is mulling expansion beyond 2024, when it’s due to complete a 50% increase in production capacity for electrical steels.”JFE Steel’s Chief Financial Officer Mr Masashi Terahata said “JFE will consider further steps beyond a planned doubling of capacity by September 2024. JFE will consider options including building a plant in North America or other regions where demand will be strong.”Electrical steels have enhanced magnetic properties and help limit energy loss in EV motors, and are also used in power-generation equipment and mobile phones. There are only a relatively small number of producers of electrical steels and there are significant barriers to entry
Bloomberg reported that Japan’s two biggest steelmakers Nippon Steel and JFE Holdings, which are already spending a combined JPY 172 billion (USD 1.3 billion) to lift output of electrical steel used in EV motors, may accelerate investment as electrical steel is becoming increasingly sought after as the shift to electric vehicles gathers pace. Nippon Steel’s Executive Vice President Mr Takahiro Mori said “Considering the trajectory of the EV transition, it looks like supply will be insufficient. Customers are asking us to increase the capacity, so additional steps are now under consideration. Nippon Steel is mulling expansion beyond 2024, when it’s due to complete a 50% increase in production capacity for electrical steels.”JFE Steel’s Chief Financial Officer Mr Masashi Terahata said “JFE will consider further steps beyond a planned doubling of capacity by September 2024. JFE will consider options including building a plant in North America or other regions where demand will be strong.”Electrical steels have enhanced magnetic properties and help limit energy loss in EV motors, and are also used in power-generation equipment and mobile phones. There are only a relatively small number of producers of electrical steels and there are significant barriers to entry
