Italy Invests Billions in New Main Battle Tank Inspired by KF51 Panther to Compete with Leopard 3

In June 2022, Rheinmetall unveiled the KF51 Panther, a new main battle tank based on the Leopard 2 hull. Despite using outdated turret technology, its development continues, supported by interest from Hungary and Italy. A joint venture with Leonardo, named Leonardo Rheinmetall Military Vehicles, aims to produce the tank and related vehicles, with Italy planning to invest 8.2 billion euros in military enhancements. The KF51 will compete against the Franco-German Main Ground Combat System for market share.

In June 2022, Rheinmetall, a prominent German defense manufacturer, unveiled a surprising study for a next-generation main battle tank known as the KF51 Panther. This innovative tank integrates state-of-the-art electronics and weaponry, yet retains the chassis of the Leopard 2, along with its drivetrain.

The design utilizes a traditional turret, which many experts consider a dated concept. This design choice results in a taller and bulkier tank, making it more easily detected and vulnerable to enemy fire. These concerns were discussed in detail in an analysis titled “Panther KF51: Leopard 2 Successor with Significant Weaknesses.” Later, in the summer of 2024, Rheinmetall introduced an updated design featuring an unmanned turret.

KF51 is Moving Towards Production

Unlike many prototype vehicles that remain mere models, the KF51 Panther is set to move into actual production, albeit with some modifications. Following Hungary’s initiative to develop a main battle tank based on the KF51, Italy is now showing keen interest. In mid-October 2024, Rheinmetall and the Italian defense conglomerate Leonardo established a joint venture named Leonardo Rheinmetall Military Vehicles (LRMV) to manufacture both a main battle tank and infantry fighting vehicles.

About Leonardo Rheinmetall Military Vehicles (LRMV)

Both Rheinmetall and Leonardo will share ownership of LRMV equally, at a 50:50 ratio. The headquarters for this venture will be located in Rome, with operational management based out of La Spezia, Italy. Rheinmetall reports that 60% of the manufacturing activities will occur in Italy, especially for final assembly, testing, and logistical support. Leonardo will handle the development and production of mission systems, electronic equipment, and weapons integration tailored to meet the specific needs of Italian clients.

Italy’s Investment in Armor

Italy has announced a substantial budget of 8.2 billion euros for tank procurement and the modernization of its ground forces from 2025 to 2038. Out of this budget, 5.4 billion euros are confirmed, while discussions continue regarding the remaining funds. Leonardo Rheinmetall Military Vehicles (LRMV) is poised to become a key defense partner in this endeavor, according to reports from government sources.

LRMV has crucial responsibilities, including providing additional defense vehicles. For instance, Hungary is acquiring the Lynx as an infantry fighting vehicle, while LRMV will also develop recovery, engineering, and bridge-laying vehicles—essential components in main battle tank operations, as they ensure that damaged tanks can be towed and repaired.

A New Challenger to Leopard 3 and Main Ground Combat System

The KF51-based main battle tank and the Lynx infantry fighting vehicle are both intended for export, contingent on the interest from potential buyers. This positions the modified KF51 as a direct competitor to the Main Ground Combat System, a Franco-German initiative aimed at developing successors to existing tanks like the Leopard 2 and the French Leclerc. This project has faced delays due to bureaucratic challenges and legislative debates, thus making the KF51 an attractive alternative to a potential Leopard 3. Together, Rheinmetall and Leonardo represent a competitive force against the KNDS consortium.

The formation of the joint venture is anticipated to finalize by January 2025, pending necessary regulatory approvals.

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