Tata Steel to Begin UK Electric Arc Furnace Project by July.

Tata Steel will begin constructing its £1.5 billion electric arc furnace (EAF) facility at Port Talbot, UK, in July 2025, targeting operations by 2027. This marks a major shift from traditional blast furnace steelmaking to a lower-emission, EAF-based model, backed by £500 million in UK government funding. With the decommissioning of blast furnaces complete, Tata Steel is currently operating through downstream units using imported substrate from India and the Netherlands.

The new EAF will have an annual capacity of 3.2 million tonnes and is expected to cut over 50 million tonnes of CO₂ emissions in the next decade. As part of its transition, Tata Steel aims to reduce fixed costs from £762 million to £540 million by streamlining operations, optimising substrate sourcing, and cutting overheads. This project underscores Tata’s commitment to decarbonising steel production while maintaining its presence in the UK’s industrial landscape.