Rolls-Royce Under Government Pressure to Source Nuclear Reactor Parts from UK Steelworks

By the Editorial Team · Sunday, August 2, 2026

The UK government has held high-level talks with Rolls-Royce to increase the involvement of British steel manufacturers, such as Forgemasters, in producing components for new small modular nuclear reactors after initial supplier choices favored foreign companies. This push aims to protect the UK steel industry, enhance national security, and ensure significant domestic investment as Rolls-Royce and Great British Energy balance cost efficiency with local sourcing.

The UK government has engaged in high-level discussions with Rolls-Royce regarding the manufacturing of components for its new small modular nuclear reactors (SMRs), aiming to secure UK steel industry involvement after concerns arose about outsourcing key parts overseas. The talks took place last week between Rolls-Royce representatives and officials from the Department for Energy Security and Net Zero, as well as Great British Energy, the state-owned investment company overseeing the project.

Earlier this year, Rolls-Royce selected Czech firm Skoda and South Korea’s Doosan Enerbility as its primary suppliers for the SMR programme, a decision that attracted criticism for potentially sidelining British manufacturers. Critics warned that allowing vital reactor infrastructure to be produced abroad could damage the UK’s steel sector and undermine national security interests associated with domestic industrial capacity.

The government’s intervention followed reports that Sheffield-based Forgemasters, a major UK steelworks, had the capability to manufacture some of the necessary reactor components. Sources familiar with the matter confirmed that Rolls-Royce faced sustained pressure to explore sourcing options within the UK, reflecting broader concerns that British firms risk losing out on contracts central to the country’s energy future.

Great British Energy representatives have recently visited Forgemasters, and the firm disclosed ongoing commercial discussions with Rolls-Royce and its partners regarding the supply of forged components. Gary Nutter, Forgemasters’ chief executive, noted that talks include potential production for UK projects as well as exports. Skoda and Doosan, meanwhile, continue to progress with pre-production activities, including design finalisation and manufacturing readiness focused on reactor pressure vessel bodies.

The renewed government emphasis on domestic sourcing comes amid fears that the UK’s steel industry, which plays a strategic role in national infrastructure and defence projects, faces erosion in the face of foreign competition. Industry leaders have underscored the importance of maintaining a robust UK industrial base. Sir Andrew Cook, a prominent figure in the steel sector, invoked a historical reference to former Labour Foreign Secretary Ernest Bevin’s words about national security and manufacturing, suggesting a similar imperative applies to SMRs.

Rolls-Royce’s SMR division, partly owned by Czech utility CEZ, is developing the first three reactors planned for deployment in the UK under Great British Energy’s operation. These reactors, which will also be installed in the Czech Republic and Sweden, are designed for efficient assembly using standardised components, making cost management a key factor. This has contributed to tension between government departments over production locations, reflecting a dispute between the Treasury and energy officials regarding cost and sourcing strategies.

Rolls-Royce affirmed its commitment to maximising UK content, stating it is actively collaborating with Forgemasters and Tier 1 suppliers to identify manufacturing opportunities both domestically and for export. The Department for Energy echoed this sentiment, noting ongoing joint efforts between Great British Energy and Rolls-Royce to benefit the UK supply chain and regular government engagement on progress.

The government highlighted that Great British Energy Nuclear has awarded contracts worth over £850 million to UK-registered companies, indicating significant investment in domestic supply capacity despite ongoing discussions about overseas involvement.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.