Leonardo, Rheinmetall Launch Joint Venture to Develop New Italian Battle Tank, Lynx Vehicle

Leonardo and Rheinmetall have formed a joint venture to develop a new main battle tank and a variant of the Lynx infantry fighting vehicle for the Italian Army.

The announcement was made today, following the signing of a Memorandum of Understanding (MoU) in July 2024 in Rome.

The new company, named Leonardo Rheinmetall Military Vehicles (LRMV), will be co-owned by the two companies, with each holding a 50% share. LRMV will be headquartered legally in Rome and operationally in La Spezia. The establishment of the joint venture is anticipated by the first quarter of 2025, pending regulatory approvals.

The primary focus of LRMV is to advance the industrial development and marketing of a new Italian main battle tank (MBT) and the Lynx platform, part of the Armoured Infantry Combat System (AICS) program for the Italian Army. Plans also include the development of additional vehicles such as recovery, engineer, and bridge-laying vehicles.

The new MBT will replace the current Ariete model and will be based on Rheinmetall’s Panther KF51. The AICS program aims to procure over 1,000 armored combat systems in 16 variants, including anti-aircraft, reconnaissance, and anti-tank versions, all designed with modular capabilities.

A 50:50 division of labor has been agreed upon, with 60% of the work expected to be conducted in Italy. This includes final assembly, testing, and logistical support. Leonardo will handle the development of mission systems, electronic suites, and weapons integration to meet the requirements of the Italian Army.

Rheinmetall operates three subsidiaries in Italy, employing around 1,500 people across five locations.