UK MoD: Steel Sector Shift Has Low Impact on Defence, Despite Port Talbot Blast Furnace Closure
London, UK – November 4, 2025: The UK Ministry of Defence (MoD) has assessed that the impact of changes in Britain’s steelmaking capacity on military programmes is low, following the country’s ongoing transition from traditional blast furnaces to electric arc furnaces (EAFs). The move comes after the closure of blast furnaces at Port Talbot in September 2024, a pivotal shift for the UK steel industry.
In a written parliamentary response on October 30, Minister for Defence Readiness and Industry Luke Pollard said the risk to defence was “deemed to be low.” The government is nevertheless preparing further analysis through a new Steel Strategy to ensure future resilience, competitiveness, and sustainability across the defence steel supply chain.
MoD Assessment: Risk to Defence “deemed to be low.”
The MoD’s initial assessment indicates minimal disruption to ongoing and planned military programmes from the UK’s steel transition. In Parliament, Pollard stated the current risk was “deemed to be low.”
The judgement comes as the UK accelerates its move to EAFs, which melt scrap steel and offer lower carbon emissions and reduced labour requirements compared with blast furnaces. While the shift aligns with broader industrial decarbonisation, it also raises questions about access to high-grade steels required for sensitive defence applications.
Industry Shift and Sovereignty Concerns
The Port Talbot closures marked the UK’s exit from producing virgin steel from iron ore via blast furnaces. According to one UK think tank, the decision would leave Britain as the only G20 economy without this sovereign capability. The MoD’s stance, however, reflects confidence in diversified sourcing and ongoing adaptations within the industrial base.
Defence Demand: From Submarines to Fighter Jets
Defence platforms across the air, land, and sea domains depend on specialised steel-ranging from the UK’s Dreadnought-class ballistic missile submarines to F-35 programme components. The attrition rates observed in the Russia-Ukraine war underscore the need for industrial capacity able to rapidly replace and sustain equipment, particularly amid the widespread use of loitering munitions.
Where the UK Sources Defence Steel
Government data shows that in the last year, Defence Equipment & Support (DE&S) procured steel components from a wide range of international suppliers. Countries included:
- Belgium
- Brazil
- Czech Republic
- France
- Finland
- Germany
- Greece
- Indonesia
- Italy
- South Korea
- Spain
- Sweden
- Türkiye
In addition, previous reporting found that the majority of steel for the UK’s Type 26 and Type 31 frigate programmes was sourced from within the European Union. This international procurement footprint remains central to delivery schedules for naval and other defence platforms.
EAF Limits and the High-End Steel Challenge
While EAFs can deliver large volumes of steel through recycling, the process is generally suited to scrap-based production and may not alone meet the highest-grade specifications required for submarine manufacture and other high-end military uses. Scientists are working to improve the quality of recycled steels, and industry experts note that adding an iron source such as direct reduced iron (DRI) could enable production of the highest qualities of steel demanded by critical defence programmes.
The UK also has an abundance of scrap metal, much of which is currently exported. Redirecting more of this material into the domestic steel sector could strengthen supply security and support the country’s net-zero and industrial competitiveness goals.
Policy Direction: Defence Industrial Strategy and New Steel Strategy
The government’s Defence Industrial Strategy, issued in September, highlighted the need to build a stronger domestic steel supply chain for defence. Officials have confirmed that a forthcoming Steel Strategy will further examine the impacts of the sector’s transition and outline measures to maintain a competitive and sustainable UK steel industry.
What’s at Stake
- Programme continuity: Ensuring uninterrupted delivery of major platforms such as the Dreadnought-class submarines, Type 26 and Type 31 frigates.
- Supply resilience: Balancing international sourcing with strengthened domestic capacity.
- Capability assurance: Meeting stringent quality requirements for high-end military steel.
- Sustainability: Leveraging EAFs and recycled feedstock while addressing capability gaps.
Conclusion
The MoD’s current view is clear: the immediate impact of the UK’s steel sector changes on defence is low, with the risk “deemed to be low.” However, with high-spec defence steel in focus and procurement still heavily international, the government’s upcoming Steel Strategy and ongoing supply-chain reforms will be critical to safeguarding long-term defence readiness and industrial sovereignty.
