What is Rheinmetall AG? What Does It Do? The Tank and Ammunition Giant That Is the New Boss of Germany’s European Defense
Image: Rheinmetall AG press archive
From an Agricultural Tool to the New Master of European Defense
1889. In the city of Düsseldorf, Germany, engineer Heinrich Ehrhardt establishes a small metalworking shop: Rheinische Metallwaaren- und Maschinenfabrik. 136 years later, the same company — now known as Rheinmetall AG — stands as Europe’s largest producer of land systems and ammunition; at the center of NATO’s artillery and armor inventory with Leopard tanks, Boxer 8×8 armored vehicles, Skyranger 30 air defense systems, and 155 mm/120 mm/35 mm ammunition.
Russia’s invasion of Ukraine in 2022 turned Rheinmetall overnight into a symbol of Europe’s “defense rearmament” narrative. According to data announced by CEO Armin Papperger in 2024, the company made 7.6 billion euros in arms sales in 2023; it was ranked as the 22nd largest defense firm in the world in the SIPRI 2024 report. New 155 mm ammunition lines are being opened in Germany, Hungary, the Netherlands, and Lithuania; a complete facility investment is being made in Ukraine for the licensed production of the Panther KF-51. At the beginning of 2025, it rose to 18th place in the Defense News Top 100 ranking.
At a Glance
Company Structure and Its Place in the Defense Industry
Rheinmetall AG today is a holding company consisting of two main branches: Defence and Power Systems. The Defence branch is divided into four business areas: Vehicle Systems (tracked and wheeled armored vehicles), Weapon and Ammunition (artillery, ammunition), Electronic Solutions (command-control, sensors, simulation), and Sensors and Actuators.
Rheinmetall has an undisputed superiority in NATO artillery inventory: 120 mm Rh-120 tank gun (Leopard 2, M1A2 Abrams, K2 Black Panther, Type 10), 35 mm KDA anti-aircraft gun (Gepard, Skyranger, variant of GÜRZ), 30 mm MK30-2/ABM explosive fuel gun (Puma, KF-41 Lynx). On the 155 mm ammunition side, the annual production capacity is set to increase to 1 million shells by 2025 — this figure is 7-8 times the pre-war figure.
For the Turkish defense industry, Rheinmetall is both a competitor and a partner. The supply of 120 mm L/55 guns to Turkey alongside the Leopard 2A4 since the 1980s has shaped MKE’s barrel production ecosystem. The ASELSAN GÜRZ hybrid air defense system’s 35 mm gun subsystem is conceptually a direct competitor to Skyranger.
Highlighted Products Table
| Product Name | Product Type | Operational Area | First Introduction | Users | Export Status |
|---|---|---|---|---|---|
| Leopard 2A8 | Main Battle Tank (KMW joint) | Armored combat | Leopard 2: 1979; 2A8: 2023 | Germany, Norway, Sweden, Italy, Czechia | Intensive export |
| KF-51 Panther | Next generation tank | Armored combat | 2022 (Eurosatory) | Hungary, Italy (potential); Ukraine (license) | In marketing phase |
| Boxer 8×8 | Modular armored combat vehicle (KMW joint) | Infantry transport, ATGM, command, medical | 2002 | Germany, Netherlands, Lithuania, UK, Australia, Slovenia | Intensive export |
| KF-41 Lynx | Infantry fighting vehicle | Mechanized infantry | 2018 | Hungary, Australia, Italy (potential) | Newly started export |
| Puma IFV | Infantry fighting vehicle (PSM/KMW joint) | Highly protected mechanized infantry | 2010 | Only Germany | None |
| Skyranger 30 | Mobile air defense tower (C-UAS) | Drone, mini-rocket, helicopter defense | 2021 | Germany, Austria, Hungary, Denmark | Rapid export increase |
| Rh-120 L/55A1 | 120 mm tank gun | Tank main weapon | Rh-120: 1979; L/55: 2002 | Over 20 countries including Leopard 2, M1A2, K2, Type 10 | NATO standard |
| RCH 155 | Wheeled 155 mm howitzer (KMW) | Mobile artillery | 2014 (official: 2022 UK) | Ukraine, UK, Germany | Active export |
| HX Series | Military logistics truck | Military supply, tractor | 2007 | Germany, UK, Australia, Norway | Intensive export |
| 155 mm Ammunition Family | Artillery ammunition (DM121, DM131, V-LAP) | PzH 2000, RCH 155, M109 | 1980s-2010s | Across NATO | Capacity expanding |
| MANTIS | 35 mm base defense system | Rocket-air-artillery (C-RAM) defense | 2011 | Germany (deployed in Afghanistan) | Limited |
Detailed Descriptions of the Products
Leopard 2A8 — Europe’s Flag Tank
Leopard 2 is the world’s most successful Western-designed main battle tank, entering the Bundeswehr inventory in 1979. Rheinmetall produces it in collaboration with Krauss-Maffei Wegmann (now part of KNDS); Rheinmetall primarily provides the 120 mm Rh-120 L/55A1 tank gun, fire control, and ammunition line. The latest variant, the 2A8, is being delivered from 2023 with the Eurotrophy active protection system, advanced thermal camera, and digital architecture. Germany has ordered 123 Leopard 2A8s by 2024, Norway 54, Sweden (Strv 123A) 44, Italy 132, Czechia 77, Lithuania 54, and the Netherlands 46. The Leopard 2A4 in the inventory of the Turkish Armed Forces is a second-hand purchase from Germany.
KF-51 Panther — Rheinmetall’s Lone Tank Dream
Introduced at Eurosatory 2022, the KF-51 Panther is a next-generation tank developed independently by Rheinmetall, separating from the joint Leopard production with KMW. It features a 130 mm Rh-130 gun, an automatic loader, a helicopter-style canopy structure, and a Top Attack system capable of launching drones. Hungary signed a letter of intent in 2023 as the first customer; an agreement was made in 2024 for local licensed production of the KF-51 Panther with Ukraine — one of the most daring defense investments made during wartime.
Boxer 8×8 — Modular Armored Revolution
Boxer is an 8×8 wheeled armored vehicle developed under the ARTEC partnership between Rheinmetall and KMW. Its main innovation is the modular mission pod architecture: the same chassis can be converted into an infantry carrier, command center, medical vehicle, mortar carrier, or ATGM platform by changing the mission module. Germany ordered 405, the Netherlands 200, Lithuania 200, the UK (Mechanised Infantry Vehicle program) 623, and Australia (LAND 400 Phase 2) 211 vehicles. Discussions are ongoing with Slovenia and Ukraine.
KF-41 Lynx — Bradley’s European Competitor
Lynx KF-41 is Rheinmetall’s alternative tracked infantry fighting vehicle to the Boxer family. It is offered with the Lance 2.0 turret equipped with 30 mm/35 mm/50 mm guns, Spike LR2 anti-tank missiles, and Rheinmetall’s own StrikeShield APS system for active protection. Hungary ordered 218 vehicles (local production in Zalaegerszeg); Australia was initially planned for Land 400 Phase 3 but was canceled. Italy is caught between Lynx and Boxer in the AICS program.
Skyranger 30 — Air Defense of the Drone Age
Skyranger 30 is a mobile C-UAS system with a 30 mm artillery turret mounted on a Boxer 8×8 or Leopard 1 chassis. It fires programmable explosive (AHEAD) ammunition and can neutralize target swarms up to 4 km away. Ukraine’s experience in drone warfare has elevated this system to an urgency category for NATO: Germany ordered 18, Austria 36, Hungary 7, and Denmark 16 vehicles in 2024.
Rh-120 L/55A1 — NATO Tank Gun Standard
Rh-120 120 mm smoothbore tank gun has been the standard of Western tank artillery since the birth of the Leopard 2. The US M1A2 Abrams (M256 license), South Korea’s K2 Black Panther, Japan’s Type 10, Israel’s Merkava Mk 4, and Italy’s Ariete tanks use this gun with licensed/local variants. The L/55A1 long-barreled variant increases range and penetrative power with KE-W A1 ammunition. The L/55A2 variant (130 mm ready) was introduced in 2024.
RCH 155 — The Revolution of Wheeled 155 mm
RCH 155 is the integration of the 155 mm L/52 howitzer turret of PzH 2000 onto the Boxer 8×8. The vehicle can fire while in motion, dropping 5 shells on the same target simultaneously with the MRSI (Multiple Round Simultaneous Impact) system. Winning the UK’s Mobile Fires Platform program (scope: 116 vehicles) and Ukraine’s order of 36 vehicles (2024) brought this system into the headlines as “the world’s most advanced artillery system.”
155 mm Ammunition — Critical Supply for the Ukraine War
In the post-2022 European 155 mm shell shortage crisis, Rheinmetall came to the forefront. The company aims to reach an annual production of 1 million shells by 2025; this figure has increased from approximately 70,000 shells annually before the war. New factory lines in Unterlüss, Germany; De Bourg, Netherlands; Várpalota, Hungary; and Lithuania (2024-2026) make this capacity possible. Among the types of ammunition are DM121 (HE), DM131, SMArt 155 smart artillery shell, and V-LAP long-range creeping shell.
HX Series — NATO’s Logistics Truck
HX family is the entire military truck family produced under the Rheinmetall MAN Military Vehicles (RMMV) joint venture, ranging from 4×4 to 10×10. Australia’s LAND 121 Phase 3B program (2,500+ vehicles), the UK’s Operational Support Vehicle program (3,500+ vehicles), and Norway and Germany are the largest customers.
Export and User Countries Table
| Product | Key Feature | Similar Systems | Importance in Company Portfolio |
|---|---|---|---|
| Leopard 2A8 | Eurotrophy APS, digital architecture | M1A2 SEPv3, K2, Altay, Type 10 | Main source of income (KMW partner) |
| KF-51 Panther | 130 mm Rh-130 gun, drone bay | Altay-MMT, T-14 Armata, MBT-A0 | Star product of the future |
| Boxer 8×8 | Modular mission pod system | Patria AMV XP, Pars 8×8 (Turkey), Stryker | Export champion |
| KF-41 Lynx | Modular Lance 2.0 turret | Puma, ASCOD, K-21, AS21 Redback, TULPAR | Next generation tracked |
| Skyranger 30 | AHEAD explosive ammunition, drone swarm defeat | ASELSAN GÜRZ, Pantsir-S1, Sky Sabre | Fast-growing field |
| Rh-120 L/55 | NATO standard 120 mm tank gun | MKE 120 mm L/55, 2A82 (Russian), CN08 (Korean) | Strategic core product |
| RCH 155 | Fire on the move, MRSI | CAESAR (Nexter), ATMOS 2000, T-155 Fırtına (tracked) | Core of artillery modernization |
| 155 mm Ammunition | 1 million rounds/year capacity | MKE 155 mm ammunition, BAE Systems | Lifeblood of Europe |
| HX Series | NATO logistics standard | BMC 380-26 ZP, Oshkosh HEMTT | Silent cash cow |
| MANTIS | 35 mm C-RAM base defense | Phalanx CIWS, Iron Dome (C-RAM mode) | Niche product |
General Assessment of the Company’s Product Portfolio
The portfolio of Rheinmetall AG can be read along two main axes: (1) Ammunition and artillery systems — the area where the company has undisputed global leadership; (2) Armored vehicle platforms — a product family balanced between competition and partnership with KMW (KNDS).
Rheinmetall’s greatest structural advantage is being the dominant supplier of NATO’s standard tank gun (Rh-120), standard 35 mm air defense gun (KDA/Skyranger family), and 155 mm ammunition. It is the real beneficiary of post-Ukrainian European armament investment (especially Germany’s 100 billion euro Sondervermögen fund).
From the perspective of the Turkish defense industry, Rheinmetall’s land systems license portfolio provided significant technology transfers to Turkey in the 1980s; MKE’s 120 mm barrel production is a direct result of this legacy. Today, systems like ASELSAN GÜRZ, ROKETSAN’s 155 mm ammunition families, and BMC’s Altay tank stand out as direct competitors to Rheinmetall products in non-European markets. The FNSS PARS series 8×8 vehicles offer a more compact version of the similar mission-pod concept of Boxer with unique Turkish design, while the Altay tank program will serve as Turkey’s alternative showcase against Leopard 2A8 and KF-51 Panther in the medium term.
Notable Developments
- 2024 — Ukraine licensed KF-51 Panther: Rheinmetall signed a licensed tank production agreement with Ukraine amid the war.
- 2024 — Germany Skyranger 30 emergency order: Bundeswehr directly procured 18 vehicles.
- 2025 — Italy AICS program: Joint production agreement with Leonardo for 1,000+ KF-41 Lynx and Panther variants.
- 2025 — Lithuania 155 mm ammunition line: Capacity of 180,000 rounds/year for NATO’s eastern flank.
- 2025 — United Kingdom Mobile Fires Platform: RCH 155 selection approved (116 vehicles).
References
- Rheinmetall AG Annual Report 2024 (official financial report)
- SIPRI Top 100 Arms-Producing Companies (2024)
- Defense News Top 100 (2024 edition)
- Bundeswehr official source list (Procurement)
- Janes Defence Weekly (Rheinmetall product files)
- Envanter Medya — What is Leopard 2?
- Envanter Medya — KNDS RCH 155 is Coming to the UK
- Envanter Medya — What is Challenger 3? (use of Rh-120 L/55)
- Envanter Medya — ASELSAN GÜRZ (35 mm Skyranger competitor)
This content is part of Envanter Medya’s Defense News Top 100 company profile series.
