Revamping the Battlefield: Rheinmetall Secures €770 Million Contract to Upgrade the UK’s Challenger 2 Tanks for Her Majesty’s Forces

Rheinmetall has secured a groundbreaking land forces contract of pan-European and NATO-wide importance. The British Ministry of Defence has partnered with the Düsseldorf-based technology firm to upgrade the British Army’s primary battle tank fleet. In total, 148 Challenger 2 main battle tanks will be enhanced with the 120mm smoothbore primary armament from Rheinmetall, along with an entirely new turret design, featuring a cutting-edge digital system architecture. As part of the British Army’s Challenger 2 Life Extension Project, or LEP, this modernization initiative aims to transform the reliable tank into the advanced Challenger 3, extending its operational lifespan for decades ahead. The project is scheduled to occur from 2021 to 2027. Recently announced in Telford (UK), the contract is valued at approximately €770 million (£665 million).

The next-generation L55A1 smoothbore cannon from Rheinmetall will position the upgraded Challenger at the forefront of NATO tank innovation. The Challenger 3 will be a network-enabled, digital tank boasting unmatched lethality and significantly enhanced survivability on the battlefield. It will possess the capability to fire existing and future Rheinmetall 120mm kinetic energy rounds as well as programmable multipurpose munitions. Coupled with the latest fire control technology and sensor systems, this will greatly elevate the vehicle’s combat effectiveness, leading to exceptionally precise firepower.

A significant portion of the upgrade operations will be conducted in the UK at the Rheinmetall BAE Systems Land (RBSL) facility located in Telford, in the West Midlands. The company has a rich legacy, having delivered the first Challenger 2 tanks to the British Army over 25 years ago. RBSL represents a joint venture between Rheinmetall and BAE Systems, with Rheinmetall Landsysteme GmbH holding a 55% stake.

As Armin Papperger, CEO of Rheinmetall AG, recently remarked, “We’re delighted to be at the helm of one of the United Kingdom’s most significant military technology initiatives here in the heart of the British tank industry. From a technological standpoint, this upgrade will position the British Challenger tank on the forefront of NATO’s armed forces. To achieve this, we have integrated the extensive expertise of RBSL with Rheinmetall’s unrivaled proficiency in large-caliber weapon systems, digitization, and advanced turret solutions.”

John Abunassar, head of Rheinmetall’s Vehicle Systems division, emphasizes that “The British Army is acquiring a world-class capability. Simultaneously, we’re celebrating the revival of top-tier tank technology in the British Isles, as most of the work will be performed in the UK and involve numerous local suppliers. This announcement follows years of diligent effort and collaboration with our client, particularly during the recent extraordinary challenges posed by COVID-19.”

RBSL will collaborate with subcontractors from across Britain, providing an economic boost to their respective regions. Operations will be managed from the RBSL facility in Telford, with technical support from the company’s heavy armor specialists both in Telford and at the RBSL site in Washington near Newcastle in northeastern England.

The modernization initiative will preserve existing high-quality industrial positions in Britain while generating several new ones. Specifically, at RBSL, the Challenger programme will sustain about 200 staff, including 130 highly skilled engineers and 70 technicians. Additionally, over the next five years, RBSL will create job and training opportunities for more than 60 trainees. Furthermore, approximately 450 jobs will either be maintained or newly established within the British supply chain.

This initiative secures the UK’s national capability base concerning defense technology and engineering expertise, while also paving the way for new product innovations and further export prospects.

Challenger 3

The new vehicle will be outfitted with the latest 120mm high-pressure L55 smoothbore cannon, which launches sub-caliber KE projectiles and programmable multipurpose ordnance. Providing enhanced accuracy and penetration power, the gun system incorporates state-of-the-art fire control technology.

A new turret design including advanced survivability systems guarantees maximum crew protection. The principal optical sights enhance the target acquisition and tracking abilities of both the commander and gunner.

Furthermore, due to new physical, electronic, and electrical architectures, this solution offers substantial growth potential for upcoming decades.