Rheinmetall and Leonardo form joint venture to develop military combat vehicles for Italy and Europe

Rheinmetall and Leonardo announced on Tuesday the formation of a joint venture to develop and produce military combat vehicles in Europe. The German automotive and arms manufacturer Rheinmetall and the Italian aerospace and defense company Leonardo signed a memorandum of understanding for the partnership in July.

The joint venture, named Leonardo Rheinmetall Military Vehicles, will be an equal partnership with legal headquarters in Rome and operational headquarters in La Spezia, Italy. It aims to develop and market new military vehicles for the Italian Army, including a new main battle tank based on Rheinmetall’s Panther KF51 to replace the Ariete system, and Rheinmetall’s Lynx platform for the Armoured Infantry Combat System (AICS) program.

The collaboration will also explore the development of additional military vehicles, such as recovery, engineer, and bridge-laying vehicles. Both companies expect their joint products to open significant sales opportunities in international markets. As part of the AICS program, more than 1,000 armored vehicles in 16 variants are expected to be procured.

Under the agreement, 60% of the work will be conducted in Italy, where Rheinmetall already has a strong presence with 1,500 employees across five locations. Rheinmetall CEO Armin Papperger said the partnership creates a new heavyweight in European tank production, targeting both the Italian market and other nations looking to modernize their combat systems.

The formal establishment of the joint venture is expected in the first quarter of 2025, pending regulatory approvals.