Nick Silk, Head of Product Management and Development & Customer Technical Services.
Tata Steel UK’s move to electric arc furnace (EAF) technology at our Port Talbot steelworks marks a transformative step in how steel is made for the UK automotive sector. From 2028, we will supply high-quality automotive steel with over 50% lower CO₂ emissions, up to 80% recycled content, and even closed-loop recycling options.
Why EAF, and why now?
The new EAF at Port Talbot is designed to replace the traditional blast furnace method of steel production, which relies heavily on coal to process iron ore into steel and emits significant amounts of CO2.
EAFs, by contrast, use electrical energy to melt steel scrap, enabling up to 100% recycled content – a significant leap from the 20% recycling cap of most blast furnaces. The UK exports around 8 million tonnes of steel scrap annually, second only to the United States. By adopting EAF technology, we can recycle this material locally, reducing emissions from transport and creating a circular economy for automotive steel. End of life vehicles are a rich source of ferrous scrap, and we are actively working with supply chain partners to enhance automotive circularity.
What does it mean for the UK automotive industry?
Automotive OEMs and Tier suppliers are under increasing pressure to reduce carbon emissions. As more cars are electrified and tailpipe emissions fall, the focus is turning to cutting the carbon footprint of the materials of the vehicles themselves as OEMs push for reductions in their scope 3 emissions. EAF steel, with its significantly lower carbon footprint offers an effective solution.
According to the World Steel Association, every 1% increase in recycled content can reduce carbon emissions by approximately 16 kg per ton of steel. For steel made from 50% recycled material, this translates to an 800 kg reduction in CO₂ per ton of steel – substantially lowering the environmental impact of each vehicle. For automakers, the transition to EAF means cleaner, more sustainable steel that could reduce the carbon footprint of a new electric vehicle by as much as 1.5 tonnes, giving them a tangible edge in meeting their sustainability targets.
Quality and supply security
This transition is about more than just sustainability; it’s about delivering cleaner steel without compromising on quality or performance. Some ask whether EAF steel can match the product range of blast furnace steel. The answer is that EAFs are already producing 90% of automotive steel grades, and with further innovation, we’re confident in meeting the requirements for more advanced products like ultra-high-strength steels and outer body panels.
The transition is being carefully planned to align with customer demand and ensure there are no disruptions to supply in the interim period. EAF production will be gradually ramped up from 2028, and we’re working with automotive customers to define their transition roadmaps, ensuring a seamless switchover of our order books over the next few years.
In the long-term, the EAF will enhance supply security for the UK automotive industry. By enabling greater use of UK-sourced scrap steel, it will reduce reliance on imported materials. While today only about 10% of Tata Steel’s raw materials are sourced domestically, the EAF setup will raise that to around 75%, creating a more stable, locally rooted supply chain for automotive components and body panels.
A pathway to a sustainable automotive future
After many years of planning and preparation, in 2024, we achieved several key milestones that bring this vision to life; in May, we signed the connection offer with the Electricity System Operator (ESO); in October, we signed a contract with the EAF equipment provider; and in November, we submitted our planning application for the new facility, with a decision anticipated in the coming months. These decisive actions underscore that the transition to ‘sustainable, low carbon footprint steel’ is not just aspirational – it’s already underway.
For the automotive industry, this transition is about more than a change in steelmaking methods. It’s a tangible commitment from Tata Steel to supporting automakers in their drive to achieve net-zero goals and deliver cleaner mobility. Together, we’re building a resilient and sustainable future for the UK automotive sector.
Learn more about how Tata Steel UK is transitioning to a green steel future here.
Organisation
Theme