Rheinmetall and Leonardo form joint venture for combat vehicle production
German company Rheinmetall and Italian firm Leonardo are establishing a joint venture for the development and production of military combat vehicles in Europe. The new entity aims to supply the Italian armed forces with new main battle tanks and infantry fighting vehicles.
German defense contractor Rheinmetall AG and Italian defense technology company Leonardo S.p.A. have officially established a joint venture, named Leonardo Rheinmetall Military Vehicles (LRMV), aimed at forming a new European hub for the development and production of military combat vehicles.
The new company will be equally owned on a 50:50 basis by Rheinmetall and Leonardo. Its legal headquarters will be in Rome, with operational headquarters in La Spezia, Italy. The formation of the company is subject to regulatory approvals and is expected to be completed by the first quarter of 2025.
The primary objective of the joint venture is to industrially develop and market a new Italian main battle tank (MBT) and the Lynx platform for the Armoured Infantry Combat System (AICS) program for the Italian Army. Plans also include the development of other vehicle variants, such as recovery and engineer vehicles.
Both partners anticipate significant export opportunities for their joint products in international markets. The agreement stipulates a 50:50 labor split, with 60% of the activities to be carried out in Italy, including final assembly, homologation, and logistical support. Leonardo will lead the development and production of mission systems, electronics, and weapon integration for these programs.
The initiative is set to modernize the Italian armed forces' equipment. Rheinmetall's Panther KF51 is being considered as the basis for the new MBT to replace the current Ariete. The Italian AICS program involves the procurement of over 1,000 armored combat systems in 16 different variants.