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Leonardo with the German Rheinmetall for tanks and armored vehicles: 20 billion agreement

The agreement is aimed at the development of the next Main Battle Tank and the Lynx platform for the Italian Army, with 60% of the activities concentrated in Italy. The contract is worth 20 billion euros over 15 years. Stocks rallying

Leonardo with the German Rheinmetall for tanks and armored vehicles: 20 billion agreement

It's official: Leonardo e Rheinmetall they announced a agreement strategic for the development of tanks of the future. This partnership aims to develop and commercialize the next Main Battle Tank (Mbt) and the Lynx platform for Armored Infantry Combat System program (Aics) of the Italian Army. The main focus - explains a joint note - will be on the integration of advanced technologies and the management of key projects that will enhance the defensive capabilities of Italy and, potentially, other partner countries. This agreement marks a turning point in the negotiations after the previous ones with Knds stopped.

Following the news, the markets reacted enthusiastically. In Frankfurt, the title di Rheinmetall it jumped by 4,99% to 505 euros. In Milan, Leonardo it was no exception, with a jump of 3,8% to 22,38 euros.

The details of the agreement

La a joint venture, which will be based in Italy, will take on a crucial role as Lead System Integrator e prime contractor for both programs: the Main Battle Tank and the Lynx platform for the Armored Infantry Combat System program. This means that it will be responsible not only for the development and integration of mission systems, electronic suites and weapons systems integration, but also for the complete management of the vehicle production and delivery phases.

Furthermore, the joint venture will have the task of defining the strategic roadmap for participation in the future Main Ground Combat System (MGCS), the next heavy tank intended to consolidate Europe's defensive capabilities. This leadership position will enable the joint venture to influence technological and strategic development in the defense sector at a continental level.

In addition to national programs, the agreement provides that the 60% of the activities are carried out in Italy, with an estimated investment of over 20 billion over the next 15 years, supporting the production of 280 tanks and over 1.000 light tracked vehicles. These vehicles are not only intended for the Italian domestic market but are also designed to meet the needs of potential international customers, thus strengthening the competitive position of the Italian defense industry on a global level.

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“The industrial and technological synergies between Leonardo and Rheinmetall represent a unique opportunity to develop cutting-edge tanks and infantry vehicles,” he said. Roberto Cingolani, CEO of Leonardo –. We consider this agreement a fundamental contribution towards the creation of a European defense space."

“Leonardo and Rheinmetall, two leading European defense technology suppliers, are joining forces to realize ambitious projects. We want to set new standards together and open the doors to a new generation of cutting-edge combat vehicle technologies, in and for Europe. In this way – he stated Armin Papperger, CEO of Rheinmetall Ag – we are targeting the Italian market and other partner countries that need modernization in the field of combat systems”.

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