Nippon Steel plans to invest about €900 million in an electric arc furnace and air separation unit at its Košice steelworks in Slovakia, its largest production hub in Europe. The electric arc furnace is designed to produce about 1.6 million tons annually and is scheduled to begin operating in 2030, while the accompanying oxygen plant is expected to start in 2029. The Slovak government will provide €350 million in subsidies through the European Union's Modernisation Fund. The facility is owned by U.S. Steel Košice, which Nippon Steel acquired in 2025, and will become a direct Nippon Steel subsidiary named Nippon Steel Slovakia on October 1. The investment is intended to support lower-carbon steel production for European customers as steelmakers respond to the Carbon Border Adjustment Mechanism and broader decarbonization demands. Nippon Steel aims to reduce CO2 emissions by 30% in 2030 from 2013 levels, although scrap and reduced-iron costs and electricity-price volatility could affect the project's profitability.