Spain Awards Indra €45 Million PAMOV Contract for Future Main Battle Tank.

Spain’s Directorate General of Armament and Material awarded Indra Sistemas a 45 million euro contract on December 30, 2025, to conduct preliminary R&D studies under the PAMOV programme. The effort marks a foundational move toward defining a future main battle tank for the Spanish Army and shaping national armored warfare priorities.

Spain has formally launched the early design phase of a future main battle tank, awarding Indra Sistemas a 45 million euro contract to carry out preliminary research and development studies under the PAMOV programme, according to information published by the Plataforma de Contratación del Sector Público. The contract, granted by the Directorate General of Armament and Material (DGAM) on December 30, 2025, positions Indra at the center of Spain’s initial effort to define operational concepts, technologies, and system requirements for a next-generation armored platform intended to succeed current Leopard 2 variants in the long term.
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Spain has initiated a structured pathway toward replacing the Leopard 2E fleet, with an indicative horizon around 2040 (Picture source: Army Recognition)

The contract, notified through the Spanish government’s procurement portal, confirms for the first time that Madrid has initiated a structured pathway toward replacing the Leopard 2E fleet, with an indicative horizon around 2040. The two-year effort falls under PAMOV, an acronym referring to R&D for a superior land combat system, and represents a decisive shift after Spain’s unsuccessful attempt to secure participation in the Franco-German MGCS programme.

Spain acquired 219 Leopard 2E main battle tanks, a variant specifically adapted to Spanish Army requirements and produced domestically by Santa Bárbara Sistemas under license from Germany. The Leopard 2E program followed the earlier leasing of 108 Leopard 2A4 tanks in the late 1990s, which were intended as an interim solution while the national production line was established. Deliveries of the Leopard 2E began in the mid-2000s, and the tank became the backbone of Spain’s heavy armored forces, equipping its main armored brigades.

In terms of capabilities, the Leopard 2E is broadly comparable to the German Leopard 2A6 but incorporates several national modifications. It is armed with the Rheinmetall 120 mm L55 smoothbore gun, capable of firing modern kinetic energy penetrators and programmable high-explosive ammunition. The tank features enhanced composite armor with additional protection tailored to Spanish operational requirements, improved climate and cooling systems for hot environments, and an upgraded fire control system enabling accurate day and night engagements on the move. Power is provided by the MTU MB 873 Ka-501 diesel engine, producing 1,500 horsepower, giving the Leopard 2E excellent mobility and cross-country performance despite its weight.

Digitally, the Leopard 2E integrates Spanish-developed command, control, and communications systems, allowing it to operate effectively within networked combined-arms formations. While still considered a capable and survivable platform by NATO standards, Spanish defense planners assess that its design limits will become increasingly apparent beyond the 2035-2040 timeframe, particularly against advanced threats such as loitering munitions, top-attack weapons, and highly networked adversaries. This assessment underpins Madrid’s decision to explore a next-generation solution through the PAMOV programme, rather than relying solely on incremental upgrades to the existing Leopard 2E fleet.

According to the official contract notice, the future system is envisioned as a next-generation combat platform designed to operate in highly demanding environments, delivering performance levels well beyond those of current armored vehicles. The Spanish Ministry of Defence specifies that the platform must integrate advanced solutions in propulsion, protection, lethality, and situational awareness, while ensuring high tactical and strategic mobility. Officers involved in the early definition phase told Army Recognition that the studies will explore disruptive concepts rather than incremental upgrades, including new powertrain architectures, digitalized survivability systems, and network-centric combat functions.

A central requirement highlighted in the DGAM documentation is full interoperability with allied platforms, underpinned by an open and scalable electronic architecture. This reflects Spain’s intent to ensure seamless integration within NATO formations while preserving long-term growth potential. Indra’s role is expected to focus heavily on the digital backbone of the future tank, leveraging its experience in battle management systems, sensors, electronic warfare, and command and control integration. An industry source close to the program noted that PAMOV is likely to prioritize software-defined capabilities and modularity from the outset, drawing lessons from recent high-intensity conflicts in Eastern Europe.

The launch of PAMOV comes as Spain reassesses its armored force structure. The Ejército de Tierra currently fields Leopard 2E main battle tanks produced in Spain with German technology, alongside a diminishing number of Leopard 2A4 vehicles. Part of the older 2A4 fleet was placed in storage in Zaragoza, while at least 30 units were refurbished and transferred to Ukraine in 2023. Spanish Army planning documents indicate that remaining operational Leopard 2A4 tanks are to be replaced by Leopard 2A8 vehicles, leaving the Leopard 2E as the core system to be succeeded by a future platform.

Despite the political and industrial significance of PAMOV, the programme raises questions about scale and affordability. Spain’s land forces alone may not generate sufficient production volume to sustain a fully national main battle tank programme without export success or international cooperation. Defense analysts in Madrid suggest that PAMOV could serve as a technological bridge, allowing Spain to mature critical subsystems and preserve design sovereignty while keeping the door open to a future multinational partnership, potentially re-entering a European framework such as MGCS at a later stage.

The timing of the initiative is also notable at the European level. The European Commission has recently launched a call for proposals for a next-generation main battle tank concept with up to 125 million euros available through the European Defence Fund. Several Spanish defence officials privately indicated that PAMOV could be aligned with this mechanism, strengthening Spain’s position in future European armored cooperation while anchoring key competencies within national industry.

For the Spanish Army, PAMOV is not merely a research contract but a strategic signal. It reflects Madrid’s determination to remain a credible armored power within NATO, capable of fielding a modern main battle tank adapted to future warfare while safeguarding national industrial and technological sovereignty.

Written By Erwan Halna du Fretay - Defense Analyst, Army Recognition Group

Erwan Halna du Fretay is a graduate of a Master’s degree in International Relations and has experience in the study of conflicts and global arms transfers. His research interests lie in security and strategic studies, particularly the dynamics of the defense industry, the evolution of military technologies, and the strategic transformation of armed forces.