Germany deepens Rheinmetall pact for Leopard 2 tank 120 mm ammo as Bundeswehr rebuilds stocks.

Germany has placed a fresh multi-hundred-million-euro call off with Rheinmetall for 120 mm Leopard 2 tank ammunition under its expanded 4 billion euro framework agreement running to 2030. The move underpins Berlin’s Zeitenwende rearmament effort, rebuilding depleted stocks and securing long-term supply for a growing Leopard 2 fleet at home and in Lithuania.

Rheinmetall has received a new order from the Bundeswehr for an additional 120 mm tank ammunition for the Leopard 2, drawing on the framework contract that Germany lifted to around 4 billion euros in 2023. The latest call off, announced on 8 December 2025 and valued in the several hundred million euro range, covers both combat and training cartridges for the Rh 120 smoothbore gun and will be delivered through the end of the decade. German officials see the deal as another building block in the Zeitenwende pledge to restore ammunition reserves that had long been viewed as inadequate for high-intensity warfare.
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The Bundeswehr fields 313 Leopard 2 tanks, including 209 Leopard 2A5/A6 and 104 Leopard 2A7V, while an additional 105 Leopard 2A8 have been ordered to equip the German brigade set to be permanently stationed in Lithuania from 2027 (Picture source: Bundeswehr)

The Bundeswehr fields 313 Leopard 2 tanks, including 209 Leopard 2A5/A6 and 104 Leopard 2A7V, while an additional 105 Leopard 2A8 have been ordered to equip the German brigade set to be permanently stationed in Lithuania from 2027. This expansion could bring the fleet above 400 tanks by the next decade if older variants remain in service. A fleet of this size requires substantial reserves and the ability to absorb heavy consumption during multinational exercises or prolonged missions. Units operating the Leopard 2 depend on a steady flow of ammunition, as the Rh-120 gun relies on a range of rounds from APFSDS to programmable multi-purpose types whose effectiveness depends on consistent and reliable supply.

Rheinmetall provides ammunition built to the NATO 120 × 570 mm standard, the configuration used by the Rh-120 smoothbore gun. This type of round uses a semi-combustible case that largely disappears after firing, reducing overall weight and allowing the use of a standard breech compatible with manual loading. A complete APFSDS round weighs roughly 19.8 kg, slightly more than older 105 mm ammunition, but acceptable given the increased energy delivered at the target.

The Rh-120 gun exists in two main versions: the L/44 used on early Leopard 2 variants and the later L/55 fitted to the A6, A7, and A8 models. The longer L/55 barrel produces higher muzzle velocities, improving the penetration capability of modern kinetic rounds at extended ranges. The system’s design requires strict compatibility between the ammunition and the barrel’s ballistic characteristics. The issue extends beyond overall quantities: consistent technical alignment among ammunition families, fusing systems, and fire-control algorithms is essential to maintain accuracy and reliability under operational conditions.

The Leopard 2’s tactical employment depends on stable and repeatable firepower. In high-intensity settings, the firing rhythm of the 120 mm gun requires prepositioned logistics. Armour-piercing rounds provide long-range anti-tank effects, while high-explosive charges offer adaptable effects against fortified positions or mechanized infantry. Training rounds with realistic ballistic profiles allow crews to maintain proficiency without drawing from combat stocks, whose availability directly influences readiness for rapid deployment. This new order supports the Bundeswehr’s manoeuvre capacity by securing enough ammunition to sustain training, pre-deployment preparation and operational commitments simultaneously.

Rheinmetall’s recent evolution helps explain the broader context of this decision. The company has expanded its position in Europe through sustained investment, notably the acquisition of the Spanish firm EXPAL in 2023. Production of 155 mm artillery shells has increased tenfold since 2022, and overall output is expected to reach one million rounds annually by 2026. This upward trend also affects tank ammunition, where growing European demand and the widespread use of the Leopard 2 drive production. Persistent constraints on armour steel, explosives, and nitrocellulose demonstrate that increased output also depends on energy and industrial inputs that cannot be rapidly scaled. Rheinmetall’s activity signals a deeper restructuring underway in the defence-industrial sector, matching the priorities expressed by several governments.

Across Europe, the rebuilding of strategic stockpiles and the revitalization of defence-industrial networks are now shared objectives. Several countries, including the Netherlands, Lithuania, and Italy, are investing or reinvesting in the Leopard 2A8, while Poland continues to enlarge its armoured fleet. NATO’s coherence in the land domain hinges on a reliable flow of ammunition compatible with Western platforms. By placing Rheinmetall at the centre of its supply effort, Germany strengthens its autonomy and reinforces its credibility within the alliance. The order responds not only to a technical requirement but reflects a wider shift in Europe, where the availability of material resources increasingly shapes the credibility and sustainability of political and military commitments.