The traditional method of manufacturing propellant tanks for rockets and spaceships involves significant amounts of forging, and machining, making it expensive and environmentally unfriendly. A novel approach for manufacturing propellant tanks that reduces the need for machining and friction stir welding processes has been presented in this paper. This approach involves manufacturing a tank half starting from a single metal plate, using innovative and advanced metal forming processes such as hot stretch forming, magnetic pulse forming, hub forming, and integrated stiffened cylinder (ISC) flow forming followed by orbital welding of two tank halves. A life cycle assessment (LCA) study was conducted in accordance with ISO 14044:2006 standard using the ReCiPe 2016 Midpoint (H) method to compare the environmental impacts of the traditional and newly developed approaches for manufacturing propellant tanks. The results of the LCA study showed that the new approach based on advanced forming technologies reduced carbon footprint by 40%, cumulative energy demand by 35%, water footprint by 17%, and materials waste by 4% compared to traditional manufacturing. The lower environmental impact of the new approach was attributed to a decrease in friction stir welding requirements due to the implementation of advanced forming techniques that enable integrated tank production. This lowered the overall energy consumption in the novel approach by a factor of 1.5 and in turn resulted in lower environmental impact compared to traditional forging and machining-based method. Furthermore, a futuristic scenario that involves in-house tank production using the novel approach with minimal transportation of inventories was also simulated. Based on the LCA results, it was seen that the newly developed approach for manufacturing propellant tanks was more environmentally friendly than the traditional approach and its environmental footprint could be further reduced by implementing the futuristic scenario with minimal transportation. This novel approach is also expected to reduce the lead time and production cost of manufacturing a propellant tank. Hence, future efforts in cost assessment and further optimization of raw material and energy usage are recommended.