Europe’s largest ammunition manufacturer<\/strong><\/p>\nRheinmetall expects ammunition production to constitute the largest share of its sales, reaching \u20ac14 to \u20ac16 billion by 2030.<\/p>\n
The D\u00fcsseldorf-based arms manufacturer is already Europe’s largest ammunition producer, thanks in part to the acquisition of its Spanish competitor Expal, which was completed in the summer of 2023.<\/p>\n
While Rheinmetall produced approximately 60,000 units of 120mm tank ammunition in 2022, it plans to produce 240,000 units by 2027. For 155mm caliber artillery ammunition, the group aims to increase production from 70,000 rounds in 2022 to 1.1 million rounds in 2027, and 1.5 million rounds by 2030.<\/p>\n
The production of medium-caliber ammunition for air defense will be quadrupled by 2030 compared to 2022, reaching 4 million rounds. To achieve this, Rheinmetall is expanding its plant in Unterl\u00fc\u00df to become the largest ammunition factory in Europe, and possibly the world, according to a statement by CEO Armin Papperger at the new factory’s opening in late August.<\/p>\n
A key customer for the company is the German Armed Forces, which increased its framework agreement for the supply of tank ammunition alone to approximately \u20ac4 billion in 2023. Rheinmetall is also building a series of new ammunition and gunpowder factories in countries such as Lithuania, Latvia, Bulgaria, and Romania.<\/p>\n
Diversification in tank production<\/strong><\/p>\nRheinmetall aims to achieve its second-highest partial sales figure in the combat vehicle business, with a target of \u20ac13 to \u20ac15 billion in 2030.<\/p>\n
The group is involved in the construction of numerous long-standing tanks, including the Leopard main battle tank, for which Rheinmetall primarily produces the smoothbore cannon, and the GTK Boxer wheeled armored vehicle.<\/p>\n
In the future, Rheinmetall is focusing particularly on the Lynx infantry fighting vehicle and the Panther main battle tank. The KF41 Lynx was introduced in 2018; Hungary and Italy have placed firm orders for the vehicle so far. CEO Papperger hopes to sell more than 6,000 Lynx infantry fighting vehicles, at least if it emerges victorious in the ongoing selection process by the US armed forces.<\/p>\n
Rheinmetall is also focusing on the KF51 Panther main battle tank, which is being touted as a potential successor to the Leopard. This tank is a competitor to the German-French MGCS (Main Ground Combat System) battle tank project, which has made no progress.<\/p>\n
Rheinmetall has already received firm purchase commitments for the KF51 Panther: one from Hungary and another from Italy. Here, Rheinmetall is partnering with Leonardo.<\/p>\n
In Italy, Rheinmetall operates as a supplier in a joint venture with the Italian defense group Leonardo.<\/p>\n
SPOCK satellites: The digitalization offensive<\/strong><\/p>\nRheinmetall expects additional sales of \u20ac8 to \u20ac10 billion in its digitalization business segment, which includes the satellite business. The D\u00fcsseldorf-based tank manufacturer is entering this market from scratch.<\/p>\n
The background for this is the digital networking of weapon systems traditionally produced by Rheinmetall on the battlefield. This includes network connectivity with reconnaissance satellites.<\/p>\n
To produce these, Rheinmetall has established a joint venture with the Finnish startup Iceye, which is considered an international leader in the production of satellites with SAR (Synthetic Aperture Radar) technology.<\/p>\n
When using SAR satellites, microwaves are emitted, and their echoes are measured to create high-resolution images of events on the ground, even at night or in poor weather conditions.<\/p>\n
Rheinmetall holds a 60% stake in the joint venture, which will operate its production at the Neuss facility, while Iceye holds a 40% stake. The initial plan is to produce satellites for the German Armed Forces’ “Panzer Brigade 45” unit in Lithuania for approximately \u20ac1.76 billion.<\/p>\n
The reconnaissance system will be named SPOCK (Space-based System for Persistent Operational C2 and Kill-chain). Competing firms were displeased that the contract was awarded without a tender process, which was a clear advantage for Rheinmetall.<\/p>\n
Kamikaze drones<\/strong><\/p>\nRheinmetall aims for additional sales of \u20ac3 to \u20ac4 billion in the air defense segment by 2030. This is also a relatively new area for the company.<\/p>\n
In July, Rheinmetall, in collaboration with the US defense giant Lockheed Martin, opened a factory in Weeze, North Rhine-Westphalia, that produces fuselage parts for the US F-35 fighter jet. This was the first step into the aviation industry.<\/p>\n
The group is also working with various external companies to gain expertise in drone production. For example, it collaborates with the Israeli company UVision, founded in 2011 and specializing in drone manufacturing, with which it primarily produces Hero kamikaze drones.<\/p>\n
Recently, this joint venture received an order to supply millions of euros worth of Hero drones to a NATO country.<\/p>\n
The D\u00fcsseldorf-based group signed a collaboration agreement for drone defense with the US startup Anduril in 2024 and expanded it this year to include drone production. Anduril is considered the world’s largest military startup.<\/p>\n
Rheinmetall also works with Auterion, a drone specialist founded in Switzerland and now based in the US. According to reports, Rheinmetall is currently planning to build a drone factory in the Baltic states.<\/p>\n
New goals in the maritime sector<\/strong><\/p>\nThe new maritime division is also expected to generate a turnover of approximately \u20ac5 billion by 2030.<\/p>\n
This division will be created through the acquisition of Naval Vessels L\u00fcrssen (NVL), the naval division of the L\u00fcrssen shipyard in Bremen, with the acquisition expected to be completed by early 2026.<\/p>\n
Rheinmetall hopes this will create certain synergies with its tank-building operations but, above all, allow it to enter the extremely costly warship construction market. “In the future, we will be a significant player on land, at sea, in the air, and in space. Rheinmetall is thus transforming into a cross-domain systems house,” said CEO Papperger.<\/p>\n
NVL has primarily built corvettes; the company currently owns four shipyards in Hamburg (Blohm + Voss, Norderwerft), Wolgast (Peene-Werft), and Wilhelmshaven (Neue Jadewerft).<\/p>\n
According to reports, the corvettes, which will soon be produced by Rheinmetall’s maritime division rather than NVL, could be equipped with new weapons that Rheinmetall is currently developing in collaboration with the US company Lockheed Martin.<\/p>\n
“The current conflict situation shows that military application capabilities are becoming increasingly important in the maritime sector as well,” says Rheinmetall.<\/p>\n
Transatlantic orientation is critical for Rheinmetall<\/strong><\/p>\nRheinmetall is one of the companies in the German defense industry with a clear transatlantic orientation. Its shareholders include well-known financial firms from the US, though none of them approach the 10% ownership threshold.<\/p>\n
According to Rheinmetall’s current information, the largest single investor is BlackRock, with a 7.0% stake. It is followed by Bank of America (4.64%), Morgan Stanley (4.37%), Goldman Sachs (4.06%), and the Swiss UBS Group (3.83%).<\/p>\n
More importantly, Rheinmetall is actively seeking orders from the US armed forces, the world’s largest arms buyer, and is collaborating very closely with US companies, including Lockheed Martin.<\/p>\n
On the other hand, Rheinmetall also produces weapon systems labeled as “ITAR-free.” These are systems manufactured without US components and are therefore not subject to the US International Traffic in Arms Regulations.<\/p>\n
The SAR satellites produced by Iceye\u2014and in the future, in collaboration with Rheinmetall\u2014are “ITAR-free” and thus independent of US influence.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The German arms conglomerate Rheinmetall is systematically expanding into numerous new areas of the defense industry and plans to become one of the top three defense companies in the world. The company, which traditionally produces tanks, artillery, and ammunition, is now entering the drone and satellite production markets. According to an analysis in\u00a0German Foreign Policy, […]<\/p>\n","protected":false},"author":1,"featured_media":12573,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[3],"tags":[10242,4373,2587,14801,5042,14803,14806,3842,9237,9695,14809,7553,14807,14805,14813,14808,877,14811,14804,14810,14802,14812],"class_list":["post-12572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","tag-ammunition-production","tag-anduril","tag-armin-papperger","tag-arms-manufacturing","tag-defense-industry","tag-drone-manufacturing","tag-expal","tag-german-armed-forces","tag-iceye","tag-kamikaze-drones","tag-kf51-panther","tag-lockheed-martin","tag-lynx-infantry-fighting-vehicle","tag-naval-shipbuilding","tag-naval-vessels-lurssen","tag-panther-main-battle-tank","tag-rheinmetall","tag-sar-technology","tag-satellite-production","tag-spock-satellite-system","tag-tank-production","tag-uvision"],"yoast_head":"\n
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