The companies want to deliver a new infantry fighting vehicle to the Italian army within two years and a new main battle tank within three years.

Both companies will be equal shareholders in the new company – named Leonardo Rheinmetall Military Vehicles (LRMV) – with headquarters in Rome and La Spezia. The establishment of the company is expected by the first quarter of 2025, pending regulatory approval, with 60 percent of the work to be carried out in Italy.

Italy’s Leonardo SpA and Rheinmetall AG of Germany agreed to form a joint venture to build combat tanks in Europe, combining efforts on fighting vehicles as defense spending rises across the region.