Leonardo and Rheinmetall secure €3.7 billion Italian defense contracts

The Leonardo-Rheinmetall Military Vehicles (LRMV) joint venture has reportedly secured two major contracts from the Italian Ministry of Defense valued at approximately €3.7 billion. These agreements are part of a long-term, €23 billion modernization plan for the Italian Army's land forces.

The first contract involves the delivery of 48 armored combat platforms for the Army Armoured Combat System (A2CS) program, based on the Lynx platform. The second contract covers 30 next-generation main battle tanks (MBT) based on the Panther KF51 model, intended to replace the existing Ariete tanks.

The modernization plan aims for a final acquisition of 1,050 A2CS vehicles by 2040 and 270 MBTs by 2037. The agreement emphasizes Italian industrial involvement, with 60% of industrial activities and development to be conducted within Italy. This includes the integration of Leonardo’s proprietary electronics, mission systems, and fire management, as well as final testing and logistical support.

While Leonardo CEO Lorenzo Mariani has not officially confirmed the signing, noting that announcements must be coordinated with the Ministry of Defense, he highlighted the strategic importance of the partnership for both Italian defense upgrades and future international export opportunities.