#

Will Lynx IFV Production Really Begin in Ukraine This Year, and What Are the Hidden Challenges?

946
Lynx KF41 infantry fighting vehicles
Lynx KF41 infantry fighting vehicles

The announcement of an agreement to produce Rheinmetall's Lynx infantry fighting vehicles (IFVs) in Ukraine sounds promising. However, it's worth taking a cautious look at the timeline, especially given past experiences with similar projects

Ukraine has finally signed its first agreements paving the way for local production of the Lynx IFV. Although this marks a significant and positive development, it's important to remain level-headed and carefully examine what the agreement actually entails.

Read more: Rheinmetall Ramps Up Skyranger Production to 200 Units Year, Fueling Massive Air Defense Potential

According to Defense-Network, citing participants of the 31st Ramstein meeting, Ukraine and Germany have signed an agreement that includes a joint project for Lynx production by Rheinmetall. The outlet also reports, based on its own sources, that the new production facility is expected to be launched by the end of this year.

Lynx KF41 infantry fighting vehicles
Lynx KF41 infantry fighting vehicles / Illustrative photo credit: HMZrinyi.hu

This effectively finalizes the decision to localize production of the vehicle. A Lynx prototype was delivered for testing back in late 2024, but until recently, there had been no concrete updates on the project's progress — a delay that may have disrupted some of Rheinmetall’s commercial planning.

As Defense Express notes, this is undoubtedly good news, carrying potential benefits for both Ukraine's Defense Forces and its domestic defense industry. The demand for armored vehicles, particularly tracked ones, remains extremely high among Ukrainian troops.

Lynx IFV production in Hungary
Lynx IFV production in Hungary / Photo credit: Rheinmetall

Still, caution is warranted. There are currently no details on the nature of the agreement, the number of vehicles to be produced, or the level of localization involved. Rheinmetall has also developed a reputation for making optimistic statements about rapid project implementation, only to later acknowledge delays and obstacles — such as bureaucratic hurdles linked to its ammunition plant or other regulatory issues.

That said, the German defense giant has demonstrated its reliability by launching an armored vehicle repair facility in Ukraine and beginning construction of an artillery shell production plant. It is also fulfilling a major contract for Skyranger air defense systems worth hundreds of millions of euros.

If Rheinmetall succeeds in launching local Lynx production by the end of 2025, it would represent a major milestone. Initially, the facility will likely focus on final assembly, but over time, production could expand to include additional components.

For now, Hungary remains the only operator of the Lynx IFV. The vehicle provided to Ukraine for testing was produced at Hungarian industrial facilities — a potential risk factor given the current strained relations with Budapest.

Read more: France to Launch First Fully Autonomous UAS and UGV Unit by Summer 2026