March 9, 1862 the battle known as Hampton Roads took place when the first ironclads fought. The South's Virginia, was a conventional wood hull that had been the northern ship Merrimack. The ship was steam powered and had a steel super structure built on the wood hull. The North's Monitor was a revolutionary design being flat on the water with only a revolving gun turret sticking up.

The South built the Virginia (Merrimack) to break the blockade that the North was using against southern ports. The day before the ironclads fought, the Virginia attacked the blockade's wooden battleships, easily sinking two, and damaging a third. On the 9th of March the Virginia attacked the blockade again but the Monitor was waiting and blocked the attack. Neither ship could sink the other even though they circled each other firing at point blank range. History will record that this battle of Ironclads caused the world powers to begin building steel battleships.

More Info: en.wikipedia.org