Germany Asks Rheinmetall, Diehl Defence and Hensoldt to Develop Short- and Very Short- Range Air Defence System

Germany’s Federal Office for Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw), signed a development contract today with the Short- and Very Short-Range Air Defence System Consortium (ARGE NNbS) for the “Air Defence System, Short- and Very Short-Range”, or LVS NNbS.

Established in 2021, ARGE NNbS comprises three member companies: Rheinmetall Electronics GmbH of Bremen, Diehl Defence GmbH & Co. KG of Überlingen, and Hensoldt Sensors GmbH of Taufkirchen. The contract is valued at approximately €1.2 billion (including VAT), with Rheinmetall accounting for €607 million, Diehl for €339 million, and Hensoldt for €284 million, reflecting their respective workshares.

Ensuring that Germany fulfills its role as NATO’s lead nation in ground-based air defense and the European Sky Shield Initiative, the introduction of the LVS NNbS marks a step to address one of the Bundeswehr’s significant capability gaps.

The core objective of the LVS NNbS development project is to optimize medium-range air defense and develop high-mobility air defense capabilities to protect maneuver forces from aerial threats – even when on the move. Key objectives include achieving the necessary networking of individual components, integration of the medium-range IRIS T-SLM guided missile, ensuring interoperability, and extending the intercept zone to include short-range threats.

Networking will enable connection to the IRIS T-SLM fire units currently under procurement, as well as to the Skyranger 30 ground-based mobile air defense system, to be procured in the future. The project is in the hands of the German defense industry; ARGE NNbS is the German government’s contract partner.

By bundling complementary core capabilities – including those of other German defense contractors – ARGE NNbS brings together the foundational knowledge, capabilities, and expertise needed to meet the requirements. In the process, key technologies will remain in Germany, where they will be preserved and perfected.

Rheinmetall and its Electronic Solutions and Vehicle Solutions divisions bring technological know-how and longstanding experience in the development and delivery of defense systems, especially in combat vehicles, communications, and systems integration.

Diehl Defence specializes in developing and fabricating guided missiles. Thanks to its system solutions for ground-based air defense, it is an established force in the international market.

As a supplier of key national technologies, Hensoldt brings its expertise and tried-and-tested products, such as radar systems, to the working group. These products feature comprehensive commonalities based in part on product family concepts, primarily in airspace surveillance, classification, and identification.