Leonardo and Rheinmetall have announced the formation of a 50-50 joint venture named Leonardo Rheinmetall Military Vehicles (LRMV), marking a significant step towards enhancing European tank production. This joint venture will focus on the development and production of modern battle tanks and armoured infantry combat systems for the Italian army, with headquarters in Rome and operational activities based in La Spezia.
The primary goal of the joint venture is to deliver new Italian Main Battle Tanks (MBT) and the Lynx Armoured Infantry Combat System (AICS) to the Italian armed forces. In addition, the venture is expected to lead to future export opportunities in international markets.
The Italian army’s AICS programme aims to procure over 1,000 armoured combat systems across 16 variants, including anti-aircraft (Skyranger), reconnaissance, and anti-tank models. Rheinmetall’s Panther KF51 will serve as the foundation for the new MBT, replacing the aging Ariete tanks.
The joint venture, which will be finalized by the first quarter of 2025 pending regulatory approvals, will see 60% of its operations taking place in Italy. This includes assembly, testing, and logistics. Leonardo will be responsible for mission systems, electronics, and weapons integration in line with the Italian military's requirements.
The collaboration between Leonardo and Rheinmetall strengthens European defense capabilities and promises to provide advanced solutions not only for Italy but also for other partner nations in need of combat system modernization.
Armin Papperger, CEO of Rheinmetall AG, said: “We are creating a new heavyweight in European tank production, addressing both the Italian market and international clients looking to modernize their combat systems.”
Roberto Cingolani, CEO of Leonardo, added: “This joint venture represents a significant move towards a unified European defense system, leveraging state-of-the-art technologies to compete on the global stage.”
With a strong focus on innovation and collaboration, Leonardo Rheinmetall Military Vehicles is poised to play a key role in shaping the future of European military vehicle production.
