Germany’s Rheinmetall and Italy’s Leonardo have joined forces to establish a strategic joint venture that will revolutionize the European defence vehicle sector. This collaboration signifies a significant step towards consolidating and strengthening the industry in the region.

The CEOs of Rheinmetall, Armin Papperger, and Leonardo, Roberto Cingolani, are optimistic about the potential of this partnership. Papperger highlighted the vast European market valued at over 50 billion euros, stating, “We can help Europe grow, together, and this is a very first small step on the vehicle side for consolidation on the European level.”

The formation of this joint venture is expected to expedite the consolidation of defence assets across Europe by overcoming national interests and promoting unity. Recent geopolitical developments, such as Russia’s conflict with Ukraine, have underscored the importance of concerted efforts in bolstering European defence capabilities.

Both Rheinmetall and Leonardo aim to create pan-European consortia for the development of cutting-edge combat systems. Cingolani emphasized the futuristic vision of the alliance, stating, “The target is to create a machine that is cutting-edge for the future. A machine that is cross-domain and interoperable, talking, in the future, to satellites, helicopters and aircraft.”

The joint venture’s initial focus will be on producing tanks and other land defence systems. The headquarters of this 50-50 enterprise will be in Italy, with a primary goal of developing advanced equipment for the Italian Army, including the Main Battle Tank and Armoured Infantry Combat System.

This collaboration between Rheinmetall and Leonardo marks a significant milestone in the transformation of the European defence vehicle sector. By combining expertise and resources, the two companies are poised to lead the way in innovation and technological advancements, ultimately enhancing Europe’s defence capabilities.