German defense companies KNDS Germany and Rheinmetall Landsysteme are expanding their joint venture PSM Projekt System & Management. It will now focus not only on the Puma infantry fighting vehicle, but also on the development of a new main battle tank, potentially the Leopard 3.
The new vehicle is designed to serve as an "interim" solution until the Franco-German MGCS next-generation tank project is ready in 2045. In other words, it will be superior to the Leopard 2A8, but available sooner than a completely new tank, without a 20-year wait.
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At the same time, German officials note that no single company could independently carry out development that would meet the requirements of the Bundeswehr. Therefore, it was decided to expand the existing joint venture.
From Defense Express we would like to note that even the Leopard 2 was developed and manufactured by several companies. Although KNDS Germany (formerly KMW) was the main developer, Rheinmetall developed and supplied the turret and gun.
In other words, cooperation typically expands according to prior experience and the established legal framework. It is quite likely that the work will follow the already proven approach.
Plans for a potential ‘interim’ tank had already emerged in 2021, when it was designated the Leopard 2AX. Later, in early 2025, active work began on the project, now called Leopard 3.
The vehicle is expected to be equipped with a 130 mm Rh‑130 L/51 gun, supported by at least three ammunition types, an autoloader, a new Liebherr Olymp engine, full digitalisation, UAV integration and enhanced protection. These details, along with the start of funding, also appeared in 2025.
Notably, amid issues with the Franco-German sixth-generation FCAS fighter jet, the MGCS tank project could also be at risk. Therefore, the potential Leopard 3 could evolve from a "temporary" to a "permanent" solution in Germany, potentially leaving France without a replacement for the Leclerc.
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