The production of German KF41 Lynx infantry fighting vehicles (IFVs) by Rheinmetall in Ukraine appears far from finalized, as no funds have been allocated and no contract has been signed yet. Therefore, only five units are currently being assembled at foreign facilities, which are likely to belong to the test batch mentioned at the beginning of 2025.
This was stated by Armin Papperger, CEO of the company, in an interview with Loyal – Das Magazin, adding that localization only makes sense for an agreement covering 200 to 300 vehicles. A German observer of aid to Ukraine clarified that the interview took place two weeks ago, around the time the production agreement was signed, suggesting the project remains far from finalized.
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In other words, as Defense Express mentioned earlier, the timeline for launching Lynx production in Ukraine by the end of 2025 should be viewed with caution. The media loves sensational statements, but with large-scale projects like this, it is important to pay attention to the details.
Several hundred modern IFVs are expected to cost at least several hundred million euros, and potentially exceed one or even several billion. It is clear that Ukraine will not be able to provide the necessary funds at this time.
It is believed that Germany was expected to finance the purchase, but it appears that this issue has not yet been finalized. This is the most likely candidate, as Rheinmetall is based there, providing an additional argument for strengthening local production.
It was recently announced that the country plans to allocate an additional €3 billion in its 2026 budget for military aid to Ukraine. Some sources indicate that the funds will cover artillery, the replacement of two Patriot air defense systems, drones, and armored vehicles, possibly including the Lynx project.
An alternative source of funding could be the frozen assets of the russian federation, which have already been used to finance the order of Rheinmetall Skyranger 35 systems for Ukraine. Sweden's Gripen E project is also seeking access to these funds, but the EU is still debating whether to fully allocate them.
So, it turns out that Ukrainian production of the Lynx IFVs is currently in question, while Italy is signing its first supply contract. However, the year is not over yet, and funds may still be found to start work as soon as possible.
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