Leonardo and Rheinmetall Form Tank Production Joint Venture

Leonardo and Rheinmetall have announced the formation of a joint venture, Leonardo Rheinmetall Military Vehicles (LRMV), aimed at producing advanced combat vehicles for the Italian Army, including a new main battle tank (MBT) based on Rheinmetall's KF51 Panther and an Armoured Infantry Combat System (AICS) based on the Lynx platform. The joint venture, headquartered in Rome with an operational base in La Spezia, is structured as a 50-50 partnership and is set to launch in early 2025, pending regulatory approvals. This collaboration marks a significant move in European defense, responding to increased military spending influenced by the war in Ukraine. Approximately 60% of production will occur in Italy, supporting local industry and technological expertise. The project aims to fulfill Italy's need for modernized combat systems, with an initial goal of producing around 280 MBTs and over 1,000 infantry vehicles. Both companies intend to leverage this venture to expand into international markets, highlighting the importance of shared defense capabilities in Europe.