Italian Army Launches Modernization Drive with First Order of AICS Infantry Vehicles from Rheinmetall Leonardo Partnership
In a significant step toward modernizing its land forces, the Italian Army has placed its first order for new armored vehicles developed through a strategic partnership between Germany’s Rheinmetall and Italy’s Leonardo. As reported in the article “Italian Army Orders First Armored Vehicles From Rheinmetall-Leonardo Joint Venture” published by Breaking Defense, the procurement marks a major milestone in the two defense giants’ joint effort to supply next-generation combat capabilities to European militaries.
The order, announced this week, includes 132 infantry fighting vehicles (IFVs) based on the new AICS (Armored Infantry Combat System) platform. The vehicles will be produced under the newly established Rheinmetall Italia S.p.A., a joint venture launched in December 2024 as part of a broader initiative to streamline European defense production. This initial order is part of a larger framework agreement signed earlier this year, which outlines the potential for up to 1,000 vehicles over the coming decades, with an estimated total value exceeding €20 billion.
The Italian Ministry of Defense sees the procurement as foundational to replacing aging platforms and reinforcing NATO interoperability standards. These modern IFVs are expected to significantly enhance command-and-control, mobility, and protection capabilities for frontline Italian units. Leonardo, which leads the Italian arm of the collaboration, will be responsible for critical subsystem integration and situational awareness technologies, while Rheinmetall brings its expertise in vehicle design and digital battlefield architecture.
Breaking Defense notes that the AICS platform is based on Rheinmetall’s proven Lynx design but is being tailored to Italian operational requirements, including enhanced communications, cyber resilience, and modular armor. The new vehicles will also be integrated into Italy’s broader Forza NEC (Network Enabled Capability) digital transformation strategy, which aims to digitize Army operations through advanced sensors, networking, and AI-based decision support.
The deal underlines a growing trend in European defense policy that emphasizes cross-border industrial partnerships to drive both innovation and strategic autonomy. By tapping into shared technological and manufacturing capacities, Italy and Germany are reinforcing a pan-European defense base at a moment of increasing geopolitical uncertainty.
Delivery of the first AICS vehicles is expected by late 2026, with full operational capability slated for the end of the decade. Both Leonardo and Rheinmetall have committed to maximizing Italian industrial participation, with over 60 percent of the platform’s value projected to remain within Italy through local production and supply chains.
Defense officials and analysts view the arrangement as a model for future continental defense collaborations, facilitating not only national capability development but also broader EU and NATO defense cohesion. As European militaries move to replace Cold War-era inventories, integrated ventures like this are anticipated to play a critical role in shaping the landscape of future acquisitions.
