Germany expands Rheinmetall tank munitions agreement
Rheinmetall has a received a contract for 120mm tank rounds for use on Leopard MBTs. (Photo: US Army/US DoD)
The order includes ammunition for both German and Ukrainian armed forces.
Under an agreement just announced, the German Army has expanded a deal with Rheinmetall to provide tank munition to a value of €4 billion ($4.4 billion) and a first call-off of ammunition worth €309 million ($345 million) came immediately after the contract was signed.
The agreement could see Germany buy several hundred thousand rounds of 120mm x 570 calibre service and practice ammunition, the type fired, for example, by the Leopard 2 main battle tank (MBT).
Related Articles
How Ukraine Leopard tank breakthrough opens new offensive options for Kyiv
Rheinmetall chalks up more munitions and air defence contracts
Rheinmetall nets multi-million-euro ammunition order
The scope of the deal includes multipurpose tank ammunition with a non-programmable fuse and another variant that can be programmed for three different ignition modes: detonation on impact with and without time delay, and a timed airburst function.
The order also encompasses various types of practice ammunition featuring reduced range and lower cost, but which otherwise display comparable ballistic characteristics.
The framework agreement and contract are designed to secure a steady long-term supply of ammunition, which in turn enables better planning of the production process and optimum utilisation of existing capacity.
The company said: ‘[The contract] reflects the German military’s commitment to rebuilding its capabilities and increasing its ammunition stocks due to the new security situation. The framework agreement also encompasses a significant amount of tank ammunition for the Ukrainian armed forces’.
Leopard MBTs have been donated to Ukraine by European countries, including Germany, the Netherlands, Denmark and Canada in an effort to repel Russian forces which invaded Ukraine in 2022.
Related Equipment in Defence Insight
More from Land Warfare
-
Billion-dollar Belgium deal for NASAMS creates multinational air defence system
The National Advanced Surface-to-Air Missile System (NASAMS) is in service on five continents with more than 120 platforms delivered. The system will now form part of Belgium’s Blue Dome air defence system alongside new orders for Skyranger air defence and Thales radar systems.
-
Clearer military requirements could unlock UGV market growth
Western armies continue to test uncrewed ground vehicles, but wider procurement will depend on turning ambitions for autonomy into defined operational roles and funded requirements.
-
Can NATO’s CUAS marketplace turn urgent demand into deliveries?
Framework contracts and leasing options aim to shorten acquisition timelines, while manufacturing partnerships could help suppliers scale production to meet allied demand.
-
A medium UGV market emerges as the US weighs up its options
The US is pursuing multiple UGV programmes, from commercial robotic platforms to new autonomy technologies. The combination of these efforts could prove key to turning ambition into operational capability.
-
NATO looks for answers to overcome standards hurdles and improve procurement
NATO is looking to artificial intelligence to provide integration between different C2 systems to create a common operational picture, potentially offering a faster route to interoperability than the slow-moving processes of NATO standards committees.