The Adani Group of India and POSCO of South Korea have inked an agreement to explore potential, including the establishment of an integrated steel factory in Gujarat, the firms announced on Thursday.
Adani Group said in a statement that the MoU's investment might be worth up to USD 5 billion.
"We have decided to investigate business partnership opportunities, including the creation of a green, environmentally friendly integrated steel plant in
Mundra, Gujarat, as well as other enterprises," the Adani Group said.
In response to carbon reduction standards, the non-binding MoU aims to expand collaboration at the group
business level in multiple areas such as renewable energy, hydrogen, and logistics, according to the release.
The Adani group is rapidly expanding its solar energy portfolio and port operations in order to achieve carbon neutrality by 2025. The company has swiftly expanded into ports, power generation and distribution, airports, data centres, and digital services over the last two decades. Adani, Asia's second richest man, has recently been concentrating on extending his business into metals. The company just established a new aluminium subsidiary.
POSCO already has a 1.8-million-tonne cold-rolled and galvanised mill in the western state of Maharashtra, where it supplies automakers with parts.
Adani Group announced last year that it will invest $20 billion in renewable energy over the next ten years, with the goal of becoming a net-zero carbon emitter by 2025.