Rheinmetall Wins €3 Billion Infantry Digitisation Contract
Rheinmetall Electronics GmbH has signed a landmark framework contract with the German Armed Forces, valued at up to €3.1 billion, to digitise infantry soldier-systems. The agreement, running until 2030, represents the largest contract in Rheinmetall’s history and marks a major step in modernising the Bundeswehr’s capabilities. The Federal Office for Equipment, Information Technology and In-Service Support (BAAINBw) awarded the contract, which includes upgrading 68 existing IdZ-ES (Infantry Soldier of the Future – Enhanced System) units and procuring 24 additional systems.
An initial firm order worth approximately €417 million has been placed, with delivery set to begin in the first quarter of 2025. Signed on 6 February 2025, the contract underscores Rheinmetall’s pivotal role in advancing Germany’s digital warfare capabilities. The IdZ-ES platoon system includes 34 individual soldier-kits, featuring advanced IT equipment, optics, optronics, protective gear, and military clothing, ensuring soldiers are equipped for modern battlefield challenges.
As the main contractor, Rheinmetall will lead the project, coordinating over 30 subcontractors to deliver the upgraded systems. The new IdZ-ES builds on the VJTF 2023 variant, addressing obsolescence issues and improving communication with key military assets such as the Puma infantry fighting vehicle, Boxer armoured transport vehicle, and airborne platforms. This integration enhances interoperability and operational effectiveness across the Bundeswehr’s forces.
The modernised system is designed to integrate seamlessly with the Bundeswehr’s ‘Digitisation of Land-Based Operations’ (D-LBO) communication network. This integration is a critical step towards achieving fully networked and technology-driven combat operations, ensuring German soldiers remain at the forefront of military innovation.
Rheinmetall’s contract represents a significant milestone in the Bundeswehr’s transformation into a digitally advanced fighting force. By equipping soldiers with cutting-edge technology and enhancing connectivity across platforms, the project strengthens Germany’s defence capabilities and sets a new standard for infantry digitisation in modern warfare.
HENSOLDT Secures Over €1.4 Billion in Defence Orders
German defence technology company HENSOLDT has reported an order intake exceeding €1.4 billion between October 2024 and January 2025, reflecting strong demand across its business units. Key contracts include the Eurofighter Mk1 radar, optronic systems for the Leopard 2A8 tank, and the modernisation of the Bundeswehr’s Electronic Warfare Centre (ZEK). This surge in orders underscores HENSOLDT’s role as a leading provider of advanced sensor and electronic warfare solutions.
A significant contributor to this growth is the €350 million contract extension for the Eurofighter Common Radar System Mk1 (ECRS Mk1). This ensures the continued development of a battle-ready radar system for the German and Spanish Air Forces, enhancing their air defence capabilities. The ECRS Mk1 is a critical component of the Eurofighter’s modernisation, ensuring it remains a cutting-edge platform for future combat scenarios.
HENSOLDT has also secured a €68 million contract to supply optronic and optical systems for 123 Leopard 2A8 main battle tanks. These systems will provide the German and Norwegian armed forces with advanced battlefield surveillance and targeting capabilities, improving operational effectiveness. Additionally, the company will upgrade the sensor systems of the Fennek armoured reconnaissance vehicle through a €56 million order, delivering 92 sets of BAA III observation and reconnaissance equipment.
In collaboration with Airbus, HENSOLDT will modernise the Bundeswehr’s Electronic Warfare Centre (ZEK) as part of the IT-SEKUS ZEK programme. The €38 million project will provide advanced software and hardware solutions, ensuring the long-term readiness of Germany’s air defence systems. This initiative highlights HENSOLDT’s expertise in electronic warfare and its commitment to enhancing national defence capabilities.
Christian Ladurner, HENSOLDT’s Chief Financial Officer, emphasised the company’s strong momentum and focus on expanding capacity to meet growing demand. With these contracts, HENSOLDT continues to solidify its position as a leading European defence technology provider, delivering innovative solutions for modern military operations and driving future growth in sensor and electronic warfare technologies.
Germany Selects Elbit’s PULS Rocket Launcher for Armed Forces
Elbit Systems Ltd. has secured a €54.15 million contract to supply its PULS Rocket Launcher Artillery Systems to the German Armed Forces. The agreement, facilitated through partnerships between the Dutch, Israeli, and German governments, marks a significant step in strengthening Germany’s artillery capabilities. Elbit Systems will collaborate with KNDS Deutschland to deliver the systems, which include adaptations and integration of German C4I equipment, such as command and weapons control systems.
Under the contract, the rocket launcher systems will undergo rigorous testing by the German procurement agency BAAINBw and associated technical centres to ensure they meet operational standards. Once approved, the systems will be supported through in-service maintenance to ensure long-term reliability. This partnership highlights the growing importance of international cooperation in modern defence procurement.
Yehuda (Udi) Vered, General Manager of Elbit Systems Land, expressed pride in the collaboration, stating, “This contract sets the foundation for the Bundeswehr’s Future Long-Range Indirect Fire System and paves the way for future Euro-PULS orders. Our partnership with KNDS Deutschland reflects our commitment to delivering advanced, flexible, and cost-effective solutions that enhance operational capabilities.”
Ralf Ketzel, CEO of KNDS Deutschland, emphasized the significance of the joint effort, calling it a milestone in developing a European Indirect Fire System. “Elbit’s technology combined with KNDS’s expertise in European systems ensures the PULS System evolves into the EuroPULS,” he said. KNDS, known for its work on systems like the Leopard 2 and PzH 2000, will play a key role in adapting the PULS System to meet European standards.
The EuroPULS Rocket Launcher Artillery System, developed through the Elbit-KNDS partnership, features an open-architecture design that allows integration with various platforms and third-party munitions. This flexibility enhances its operational value, making it a versatile asset for modern armed forces. The contract underscores the strategic importance of international collaboration in advancing defence technologies and strengthening military capabilities.
Diehl Defence Sign IRIS-T Block II Missile Contract
The German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) has finalised an agreement with Diehl Defence for the development and mass production of the IRIS-T Block II air-to-air missile system. The contract, signed in December 2024, follows the approval of funding by the German legislative body, marking a significant step in advancing Germany’s defence capabilities.
The agreement was facilitated through the collaborative efforts of the IRIS-T Project Management Office (PMO), BAAINBw, and Diehl Defence. Germany leads the initiative, with Sweden, Spain, and Italy also participating in the development programme. BAAINBw will execute the contract on behalf of the consortium, ensuring a coordinated approach to the project.
The IRIS-T Block II is the next-generation version of the European-manufactured short-range missile, originally developed by Diehl Defence with contributions from an industrial consortium including Sweden, Spain, Italy, Greece, and Norway. The new iteration aims to enhance performance, reliability, and operational effectiveness, ensuring it remains a cutting-edge solution for modern air combat.
This contract underscores the importance of international collaboration in advancing defence technologies. By pooling resources and expertise, the participating nations aim to deliver a state-of-the-art missile system that meets the evolving demands of modern warfare. The IRIS-T Block II will strengthen the air defence capabilities of Germany and its partner nations.
The agreement represents a milestone in European defence cooperation, highlighting the commitment to innovation and shared security. With Diehl Defence at the helm of production, the IRIS-T Block II is set to become a cornerstone of Europe’s air defence strategy, ensuring readiness for future challenges.
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