An alternative take on the origin of Daleks with a Tolkien twist. Not all the dwarves escaped from Erebor during Smaug’s attack, but the survivors were trapped in the mountain. They hid in the shadows in fear and dreamt of being able to escape without Smaug noticing. One discovers a means to fuse their bodies to metal, and after working together the dwarves create a vessel to live in that would protect them from everything, including dragonfire. Smaug took notice and chased them out to the desolated City of Dale to destroy them, and although the walls of the city fell down on them, it did not kill them. And Smaug did not know the dwarves survived, protected in their little killing tanks.

As the years passed, the dwarves grew wicked and malicious as they upgraded their tanks, hellbent on the day when they can take back Erebor and exterminate the dragon.

And then came the day when a party of dwarves (and a hobbit) stepped into Dale and came across the Daleks.