Rheinmetall and Leonardo will jointly develop a new infantry fighting vehicle and tank for a potential $20 billion deal.

Rheinmetall’s press service announced the deal.

Today, Leonardo and Rheinmetall signed a Memorandum of Understanding (MoU) to establish a new 50:50 joint venture with headquarters in Italy.

The agreement’s objective is the industrial development and subsequent commercialization of the new Main Battle Tank (MBT) and the new Lynx Platform for the Armoured Infantry Combat System (AICS) within the Italian Army’s ground systems programs.

A platform based on the KF41 Lynx IFV is proposed as a promising Italian infantry fighting vehicle. The design of the future tank will be based on the technologies of the KF51 Panther project.

However, while the Lynx IFV already exists in metal, the currently presented KF51 and KF51-U projects with an unmanned turret are far from being completed prototypes, as all rights to their Leopard 2 tank chassis belong to the competing company KNDS.

On the same day, the German newspaper Handelsblatt reported, citing its own sources, that Rheinmetall had allegedly already received an order from the Italian government for at least 350 Lynx IFVs and more than 200 Panther main battle tanks.

According to the publication, the deal is worth about €20 billion and provides for the supply of armored vehicles over the next 15 years.

Details of the partnership

According to the signed memorandum, Leonardo will develop the combat information system, electronic components, and the integration of combat systems and weapons in both projects.

Final assembly lines, homologation testing, delivering activities, and logistic support will be done in Italy, with a 60% Italian workshare.

The two companies also plan to develop and participate in a joint venture for the MGCS Main Ground Combat System project.

Alongside defense contracts within the EU, Rheinmetall continues its expansion in Eastern Europe. The company has already deployed its first facilities in Ukraine and announced further plans to build a plant.