Japan’s two biggest steelmakers may accelerate investment in a niche steel that’s becoming increasingly sought after as the shift to electric vehicles gathers pace.
Nippon Steel and JFE Holdings are already spending a combined ¥172 billion ($1.3 billion) to lift output of so-called electrical steel used in EV motors, and are now looking to raise that further, according to interviews with senior executives.
"Considering the trajectory of the EV transition, it looks like supply will be insufficient,” Takahiro Mori, Nippon Steel’s executive vice president said in an interview. "Customers are asking us to increase the capacity, so additional steps are now under consideration.”