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Italy’s Leonardo and Germany’s Rheinmetall have reportedly secured contracts worth €3.7 billion ($4.16 billion) to supply the Italian Army with new main battle tanks and infantry fighting vehicles, marking the first production order for Italy’s new I-MBT tank program.

The agreements were first reported by Italian financial newspaper MF – Milano Finanza, and the companies have not publicly confirmed that the contracts have been signed.

The contracts involve Leonardo Rheinmetall Military Vehicles (LRMV), a 50-50 joint venture established in 2024. According to MF and subsequent defense industry reports, the agreements cover the initial production phase of the new Italian Main Battle Tank (I-MBT) and 30 additional A2CS combat vehicles based on Rheinmetall’s Lynx KF41 platform.

The tank contract covers the initial production phase of Italy’s new main battle tank, which is being developed to replace the Italian Army’s aging C1 Ariete fleet. The I-MBT is based on Rheinmetall’s KF51 Panther design but will incorporate Italian systems and modifications to meet the army’s requirements.

According to defense industry publication EDR Magazine, the first contract includes 48 armored platforms, comprising 26 tanks in the combat configuration and 22 specialized vehicles. These supporting vehicles are expected to include recovery and other specialist variants built on the same chassis.

The reported contract also includes development and prototype work, although the precise breakdown of the initial batch has not been officially released.

The I-MBT is expected to feature a 120 mm L/55 smoothbore main gun and advanced electronic systems supplied by Leonardo. The tank will combine Rheinmetall’s armored vehicle design and manufacturing expertise with Leonardo’s electronics, mission systems and weapons integration capabilities. The final configuration, including the engine and other technical specifications, has not been fully confirmed.

The wider Italian Army requirement calls for 132 new main battle tanks and 140 specialized vehicles derived from the same platform, forming part of a broader effort to modernize Italy’s armored forces and replace aging equipment. The program is intended to provide the army with a common vehicle platform that can support frontline combat operations as well as a range of specialized battlefield tasks, improving logistical commonality and simplifying long-term maintenance.

The additional vehicles are intended to support tasks such as armored recovery, bridge deployment, and combat engineering. The first reported contract represents an initial phase of this larger procurement program rather than the purchase of the entire planned fleet.

The I-MBT production contract is reportedly worth approximately €3.4 billion ($3.8 billion), with additional options valued at about €850 million ($950 million). However, the precise financial allocation between development, production, prototypes, and support vehicles remains unclear, and the figures have not been confirmed in an official contract announcement.

30 Lynx Infantry Fighting Vehicles

The second contract covers 30 additional infantry fighting vehicles under Italy’s Army Armored Combat System (A2CS) program. The vehicles will be based on Rheinmetall’s Lynx KF41 tracked armored platform, adapted to Italian Army requirements.

The new order builds on the initial A2CS contract awarded to the Leonardo-Rheinmetall partnership in November 2025. That agreement covered 21 vehicles, including five Lynx vehicles equipped with Rheinmetall’s Lance turret and 16 configured with Leonardo’s two-person Hitfist turret armed with a 30 mm cannon. The original agreement also included an option for 30 additional vehicles.

The first four Lynx vehicles were delivered to the Italian Army in January 2026 in the initial configuration, with Rheinmetall’s Lance turret. They are scheduled to be upgraded to the Italian standard, while the remaining vehicles in the initial 21-vehicle batch are to be equipped with Leonardo’s Hitfist 30 mm turret.

The additional 30 vehicles will further expand the army’s initial fleet of Lynx-based combat vehicles. The broader A2CS program envisages the acquisition of approximately 1,050 tracked vehicles across 16 variants, including infantry fighting vehicles and specialized platforms. Deliveries under the wider program are planned to continue through 2040.

Production and Delivery Schedule

The I-MBT and A2CS programs will be managed by Leonardo Rheinmetall Military Vehicles, which has its registered office in Rome and operational headquarters in La Spezia. The partnership combines Rheinmetall’s expertise in armored vehicle platforms with Leonardo’s role in electronics, mission systems, weapons integration, and other onboard technologies.

The joint venture has indicated that its production preparations for the tank program are advanced. However, the detailed delivery schedule for the newly reported contracts has not been officially disclosed.

Earlier program plans envisaged initial tank deliveries before the end of the decade, while the wider A2CS fleet is expected to be delivered over a longer period.

The $4.16 billion agreements cover only the initial stages of Italy’s planned armored vehicle procurement. The army’s longer-term requirements include 132 I-MBT tanks, 140 specialized vehicles based on the tank platform and approximately 1,050 A2CS vehicles. Further orders would be needed to complete those planned fleets.

Leonardo CEO Lorenzo Mariani said the tank and Future Combat System programs were progressing in close cooperation with Rheinmetall and that the company was ready to enter production. He also emphasized the importance of the tank program to Italy’s defense modernization and future exports, while declining to confirm whether the reported contracts had been signed.