American Rheinmetall has finalized a $107.5 million contract with the U.S. Department of Defense for the production and delivery of T-158 military tracks used on the M1 Abrams Main Battle Tank. The agreement, part of a broader five-year long-term contract, follows an earlier undefinitized award granted in August 2024 that allowed initial production to begin while negotiations continued.
The finalized deal is part of a U.S. Army initiative to secure a steady supply of track components needed to maintain operational readiness and address inventory shortfalls. The T-158 track system is designed to support the mobility of heavy armored platforms and is known for its replaceable pads and suitability in harsh environments.
In response to the scale of the order, American Rheinmetall has made upgrades across its U.S.-based manufacturing facilities. The company’s Plymouth, Michigan site has increased machining capacity to produce track shoes and metal pins, while its St. Marys, Ohio plant has resumed previously inactive operations related to rubber processing and assembly. These expansions have also led to new hiring across both locations.
American Rheinmetall’s product range includes six different types of military track, among them the T-161 model used on various medium-weight armored vehicles such as the Bradley Fighting Vehicle, M109A7 howitzer, and M270 MLRS.
Company officials described the agreement as a key step in fulfilling the Army’s broader modernization objectives and maintaining fleet readiness amid growing international demand for sustainment systems.
The contract comes at a time when the Pentagon is working to strengthen its supply chains for mission-critical components. The T-158 track, in particular, plays a central role in sustaining the mobility and combat viability of the Army’s heavy armor units.
ü
