Leonardo and Rheinmetall have announced the establishment of a 50:50 joint venture to develop and produce military combat vehicles in Europe. The new company, Leonardo Rheinmetall Military Vehicles (LRMV), will have its legal headquarters in Rome and operational headquarters in La Spezia. The agreement, which follows a Memorandum of Understanding signed in July 2024, is expected to be finalized by the first quarter of 2025, pending regulatory approvals.
The joint venture aims to equip the Italian armed forces with advanced combat vehicles, including the Italian Main Battle Tank (MBT) and the Lynx platform as part of the Armoured Infantry Combat System (AICS) programme. In addition, LRMV plans to develop a range of related vehicles, such as recovery, engineer, and bridge-laying units, with significant export potential in international markets.
Armin Papperger, CEO of Rheinmetall AG, stated, “We are creating a new heavyweight in European tank production. Leonardo and Rheinmetall, two leading European suppliers of defence technology, are joining forces to carry out ambitious projects. We are primarily addressing the Italian market, but we will also be targeting other partner nations which are in need of modernising their combat systems in the future. Rheinmetall has the perfect technologies for Italy’s requirements.”
Roberto Cingolani, CEO of Leonardo, added, “This is a significant step towards the creation of a European defense system based on specialized shared platforms. Rheinmetall and Leonardo aim at developing state-of-the-art technologies able to compete at international level.”
The Panther KF51 developed by Rheinmetall will form the basis of the new MBT, replacing the Ariete in the Italian army. The AICS programme anticipates procuring over 1,000 armoured combat systems in 16 variants, including infantry fighting vehicles, anti-aircraft systems, reconnaissance, and anti-tank models, all featuring a modular design.
In terms of labour distribution, 60% of activities will be conducted in Italy, focusing on final assembly, homologation testing, and logistic support. Leonardo will handle the development of mission systems, electronics, and weapons integration tailored to Italian requirements.
Rheinmetall already has a presence in Italy, operating three subsidiaries with approximately 1,500 employees across five sites. This joint venture signals a strong commitment to enhancing Europe’s defence capabilities through collaboration and innovation.
