Archive · 18 Jun 2025
German Defense Firms Push for More Domestic Steel Production
Germany's defense companies need more special steel to make things like tanks, due to rising global tensions and increased defense spending.
German steelmakers are hesitant because it's expensive and requires special certifications.
While some, like Salzgitter, are responding, others aren't.
Demand is growing rapidly, and the government's increased spending is expected to help the steel industry.
More steel production can boost the industry and help supply for military equipment.
Some steelmakers are wary due to the high costs of heavy-plate production and the long military certification process.
The government sees steel as important for national security, potentially needing more involvement.
German defense firms are urging domestic steelmakers to increase military-grade steel production.
Demand is driven by increased European defense spending and potential US military pullback.
Salzgitter AG is planning to supply the defense sector, while Thyssenkrupp has no plans to restart heavy-plate production.
Rheinmetall needs thousands of tons of military-grade steel annually, with demand doubling in two years.
The German government is expected to increase defense spending, offering respite to the steel industry.
- Who
- German defense firms like Rheinmetall, steelmakers like Salzgitter and Thyssenkrupp, and the German government.
- What
- German defense firms seek increased domestic production of military-grade steel.
- When
- The push is happening now, responding to rising defense spending and a shift in global politics.
- Where
- Germany.
- Why
- To ensure a reliable supply of steel for military equipment amid increased demand and global instability.
Steelmaker Hesitancy
Defense Industry Expansion
Investment
Steelmaker Hesitancy
Most steelmakers are hesitant to invest in military-grade steel production due to high costs and the lengthy certification process.
Defense Industry Expansion
Some steelmakers, like Salzgitter, are actively pursuing contracts and investing in the sector.
Demand vs. Investment
Steelmaker Hesitancy
Some companies believe the volume of steel needed is too low to justify investment.
Defense Industry Expansion
Demand is increasing, and the profit margins in the defense sector are appealing.
- Rheinmetall's Steel Need
- Several thousand tons annually
- Germany's 2025 Defense Budget Increase
- About 15% increase to over €60 billion ($69 billion)
- Salzgitter's Status
- Planning to supply the defense sector
- Thyssenkrupp's decision
- No plans to reopen heavy-plate plant
- Dillinger's Certification
- Military-certified since 2021