Italy's Ministry of Defence has launched a procurement worth EUR 5.14 billion (about US$5.84 billion) for a new main battle tank and derivative vehicles, according to The Defense Post. The tank is being developed by Leonardo Rheinmetall Military Vehicles (LRMV), a 50:50 joint venture formed in 2024, and is based on Rheinmetall's KF51 Panther.
The new tank will replace the Italian Army's ageing Ariete fleet. It is part of a much larger modernization: about 272 main battle tanks and around 1,050 tracked infantry vehicles, with an estimated total value of EUR 23.2 billion through 2040. Italian media report that roughly 60 percent of the work will be done in Italy.
Why it matters for the Leopard
For decades, European armies buying a new tank effectively chose between the Leopard 2 and nothing. Italy's decision gives the Panther its first major customer and creates a real competitor to the Leopard 2A8 and the coming Leopard 3. Notably, Rheinmetall still supplies the Leopard 2's gun, so it now sits on both sides of the competition.