Leonardo and Rheinmetall join forces to build new tanks

Italy’s Leonardo and Germany’s Rheinmetall have officially joined forces in a venture that aims to consolidate the European defence sector and develop military combat vehicles in Europe.

Both companies will be equal shareholders in the new company – named Leonardo Rheinmetall Military Vehicles (LRMV) – with headquarters in Rome and La Spezia. The establishment of the company is expected by the first quarter of 2025, pending regulatory approval, with 60 percent of the work to be carried out in Italy.

This agreement is a consolidation of the memorandum of understanding (MoU) that was signed in July 2024 between the two companies. The initial focus of the joint venture, according to LRMV, will be on the Italian defence market – specifically the development and commercialisation of a new Italian main battle tank (MBT) to replace the Ariete and new Lynx platform for the Armoured Infantry Combat Systems (AICS) programme.

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Armin Papperger, CEO of Rheinmetall AG said: “[LMRV] are creating a new heavyweight in European tank production. Leonardo and Rheinmetall, two leading European suppliers of defence technology, are joining forces to carry out ambitious projects”.

Roberto Cingolani, CEO of Leonardo, commented that the joint venture marked a “significant step towards the creation of a European defense system based on specialised shared platforms” – one that both partners expect to compete at and sell in international markets.

While the Italian market would be the initial focus, Papperger also added that the company would be targeting “other partner nations which are in need of modernising their combat systems in the future”.

According to both companies, Rheinmetall’s KF51 Panther will form the basis for the new battle tank to replace the Ariete. Its KF41 Lynx infantry fighting vehicle will also form the technological basis for the AICS.

Shephard Defence Insight has noted that the Italian MoD is understood to want to begin procuring vehicles in 2025, with the AICS project funded up until 2035.

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