Japanese steelmakerJFE SteelCorporation has announced that it is planning an additional expansion of the electrical steel sheet capacity of its WestJapanWorks (Kurashiki Area).
The capacity expansion with an investment of JPY 50 billion ($378.4 million) will triple the works’ current capacity for top-grade non-oriented electrical steel sheets used in the main engine motors of electric vehicles. The new capacity is expected to come online in the fiscal year beginning April 2026.
The steelmaker had announced in April 2021 an expansion plan for the same plant which would double the current capacity and is scheduled to be operational in the first half of the fiscal year starting in April 2024. The investment to be made for the first expansion costs JPY 49 billion ($370.7 million).
JFE Steelexpects to continue expanding its supply capacity for both types of electrical steel sheet in anticipation of further demand increases as automobiles become more electric, energy use becomes more efficient, and as renewable energy is adopted more widely. At the same time,JFE Steelwill steadily strengthen its overall manufacturing operations inJapanfor the manufacture of advanced products that help to reduce CO2 emissions.