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Heat the smoker to 225 degrees F. Meanwhile, scatter the onion slices around a 12-inch cast-iron skillet and pour in the beer. Nestle the brats in the beer bath so that the beer comes up about halfway up the brats. Bring to a simmer — not a boil — over medium heat.
Once the beer simmers, move the skillet to the smoker and close the lid. Smoke the brats for 15 minutes, and then flip them and smoke for another 15 minutes.
Leave the beer bath in the smoker but remove the brats from the liquid and place them directly on the grill grates. Continue to smoke the brats until they reach an internal temperature of 160-165 degrees F, about another 30-45 minutes. Remove from the smoker. Allow the brats to rest for about five minutes. Serve on buns with your favorite condiments. Enjoy!