Tata Steel to Supply JCB with Green Steel from New Port Talbot Electric Arc Furnace
Under a new agreement, Tata Steel will supply British construction equipment manufacturer JCB with green steel from Port Talbot after completing its transformation plans. JCB, with its strong focus on carbon reduction in manufacturing and equipment, will integrate this low-carbon steel into its machinery range.
This is the first supply agreement Tata Steel UK has made since announcing its £1.25 billion joint investment with the UK Government to transition to high-quality, low-CO₂ steel production in South Wales. The project includes the construction of a 3-million-tonne per year electric arc furnace (EAF)—one of the largest in the world—providing a lower-CO₂ alternative to traditional blast furnace methods.
The EAF will turn UK-sourced scrap into new high-quality steel, eliminating the need to import millions of tonnes of iron ore and coal. Tata Steel’s transformation plans will cut the site’s CO₂ emissions by up to 90% and reduce the UK’s overall carbon emissions by approximately 1.5%.
Anil Jhanji, Chief Commercial Officer, Tata Steel UK, said:
“One of the key drivers in our transition plans is that our long-standing and loyal customers such as JCB need green steel to meet their own decarbonisation ambitions. They want to be supplied by a trusted partner making quality steel within the UK. This announcement that two of the UK’s largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK’s transition to a circular economy.”
Wayne Asprey, Group Purchasing Director, JCB, added:
“Tata Steel is a long-term supply partner for JCB and this agreement marks an essential next step in our journey towards supply chain decarbonisation. We are fully supportive of Tata Steel UK’s investment proposals and are pleased to be one of the first customers to endorse those plans by making this agreement to secure British-made green steel as soon as it is available.”
JCB’s Ongoing Commitment to Decarbonisation
JCB has led the way in its industry with decarbonisation efforts, starting with its Road to Zero programme in 2010. Achievements include:
- Developing the first-ever electric mini-digger in 2018.
- Creating the first hydrogen-powered construction machine in 2021.
- Expanding its range of fully electric-powered equipment.
- Currently testing the world’s first construction machines powered by hydrogen combustion engines.
Major Investments in Green Steelmaking at Port Talbot
Tata Steel signed a contract in October 2024 with Tenova to deliver a state-of-the-art electric arc furnace and additional advanced steelmaking equipment at its Port Talbot site. The transformation of the site is expected to begin in summer 2025.
Tata Steel is committed to making Port Talbot one of Europe’s premier centres for green steel production. The £1.25 billion investment, which includes a UK Government grant of up to £500 million, represents the largest capital investment in UK steel production in decades.
Significantly, 75% of raw materials will be sourced from within the UK, up from just 10% today. This shift will help maintain the country’s self-sufficiency in steel manufacturing and strengthen resilience against global supply chain disruptions.
