Defense industry giants Leonardo and Rheinmetall have officially formed a new joint venture, Leonardo Rheinmetall Military Vehicles (LRMV), dedicated to the development and production of military combat vehicles. This partnership follows a July 2024 Memorandum of Understanding and establishes a 50/50 joint venture headquartered in Rome with operational headquarters in La Spezia.
The formation of LRMV comes on the heels of Leonardo’s failed attempt to create a similar venture with KNDS, another major European military vehicle producer. The earlier deal, which collapsed in June 2024, reportedly stalled due to disagreements over technology transfer and Italian participation in armored vehicle programs.
The first goal of LLRMV is to develop two vehicles, a new tank based on Rheinmetall’s KF51 Panther MBT and a new IFV based on the KF41 Lynx for Italy’s Armoured Infantry Combat System (AICS). Additionally, LRMV plans to develop and produce other vehicles within this family, such as recovery, engineer, and bridge-laying vehicles. Both partners anticipate significant export opportunities for their joint products in international markets. Later the venture will define Italy’s participation in the future European Main Ground Combat System (MGCS).
“We are creating a new heavyweight in European tank production. Leonardo and Rheinmetall, two leading European suppliers of defense technology, are joining forces to carry out ambitious projects,” said Armin Papperger, CEO of Rheinmetall AG. “We are primarily addressing the Italian market, but we will also be targeting other partner nations which are in need of modernizing their combat systems in the future. Rheinmetall has the perfect technologies for Italy’s requirements.”
The Panther KF51, developed by Rheinmetall, will serve as the basis for the new main battle tank that will replace the Ariete in the Italian army. The Italian AICS program entails the procurement of over 1,000 armored combat systems in 16 variants. In addition to the standard infantry fighting vehicle, the program includes anti-aircraft (Skyranger), reconnaissance, and anti-tank versions. All models will feature a modular design, and the Rheinmetall Lynx infantry fighting vehicle will form the technological foundation.
“This is a significant step towards the creation of a European defense system based on specialized shared platforms,” said Roberto Cingolani, CEO of Leonardo. “Rheinmetall and Leonardo aim at developing state-of-the-art technologies able to compete at the international level.”
The joint venture will involve a 50:50 labor sharing, with 60% of the work to be conducted in Italy. This includes final assembly, certification testing, delivery activities, and logistic support. Leonardo will be responsible for developing and producing mission systems, electronics suites, and weapons integration for the MBT and AICS programs, tailored to Italian requirements.
Subject to regulatory approval, LRMV is expected to be operational by the first quarter of 2025.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
