Europe focuses on green steel for the defence of the future

For generations, the steel mills of the Ruhrof the Silesia and the Lorena represented the beating heart of European heavy industry. Those smokestacks, now largely converted or decommissioned, were for decades symbols of the continent's economic and industrial power. But today, in a world shaken by geopolitical crises, energy transition and new technological challenges, theEuropean Union back to the metals sector, relaunching it with a strategic vision: producing steel in a sustainable manner, reducing emissions while strengthening its strategic autonomy.

The European Steel and Metals Action Plan: the new Brussels plan

On 19 March 2025 the European Commission presented the European Steel and Metals Action Planthe most ambitious plan to date to support the continental metal industry. A key industry that today is under pressure due to internal and external factors: Chinese overproduction, US duties, exorbitant energy costsand the urgent need to adapt to climate targets.

The aim of the plan is twofold: on the one hand, to strengthen domestic production capacity in order to protect the European market from unfair practices and excessive dependency; on the other hand, to support the ecological transition sector, turning it into one of the engines of the climate neutrality by 2050.

Steel becomes strategic again for European defence

One of the most significant innovations of the plan is the explicit recognition of the strategic role of steel for security and defence. In a Europe increasingly aware of its military vulnerability and the need to strengthen its defence autonomy, domestic metal production is now considered a pillar of the continent's operational readiness.

According to Brussels, in the next five years the Union will have to invest up to 1,000 billion in military spending. It is within this framework that the revitalisation of the steel industry, seen no longer just as a production sector, but as a strategic asset capable of supplying essential materials for armaments, armoured vehicles, ships, aircraft and military infrastructure.

Production, numbers and criticalities

Currently, the EU is able to cater for about the 90% of its steel requirementsbut the situation becomes more complicated when considering other strategic metals: only the 46% aluminium and the 25% nickel necessary are produced in-house. And the numbers become even more relevant when analysing the use of these materials: a modern tank may require up to 60 tonnes of steela self-propelled artillery system arrives at 100 tonneswhile a fighter jets needs at least 3 tonnes of aluminium.

The problem is that the competitiveness of European industry is threatened by very high energy costs: European producers pay up to five times the price of gas compared to US competitors, and four times the cost of electricity. To make matters worse, one third of the steel used in Europe today comes from Asian imports, which have tripled in the last ten years.

A green revolution: low-emission steel

The Commission's plan is based on six main pillars:

1. Reduction of energy costs;
2. Prevention of emission-related relocation;
3. Protecting European production capacity;
4. Promotion of metal recycling;
5. Employment protection;
6. Public and private investment support.

Among the most concrete measures is the creation of a European Bank for Industrial Decarbonisationwith a planned budget of 100 billionand one first 1 billion public auction in 2025 to encourage the use of low-emission technologies such as the electric ovens and the use of green hydrogen.

The transition to a 'green' steel industry is technically possible: by replacing coal with hydrogen in production processes, the CO₂ emissions can be reduced by up to 95%with water vapour as the only by-product. However, this transformation requires huge amounts of electricityand if costs remain so high, the Europe's global competitiveness risks suffering a severe blow.

Energy and security: two sides of the same coin

The gas crisis of 2022 left a deep mark: dependence on energy imports is now seen as a strategic vulnerability. This is why the European Union aims to diversify sources: renewables, nuclear (where accepted), and investment in electricity grids. Countries such as Poland, for example, have already started plans to build new nuclear power plants, with the aim of providing stable and clean energy for the metal industry as well.

This new energy could power the steel plants of the future or be used to produce green hydrogenkey to decarbonising the entire industry.

Conclusion: metal as a symbol of the new Europe

In a world where defence is back on the agenda e sustainability is a global necessitysteel reaffirms itself as strategic asset for the European Union. The revitalisation of the metals industry is not just an economic or climate issue: it is a political choicewhich aims to ensure Industrial resilience, strategic autonomy and collective security.

Source: https://www.defensenews.com/global/europe/2025/04/04/europes-defense-puts-a-fresh-twist-on-steel-growth-engine-of-old/