Germany Approves $2.9 Billion Defense Deal: Australia to Manufacture 123 Heavy Weapons Carriers for Bundeswehr

The German Parliament has given the green light for a massive defense deal with Australia worth $2.9 billion.

This groundbreaking agreement entails the procurement of 123 Heavy Weapon Carrier vehicles, a crucial component for the German Bundeswehr's operations, with production slated to take place in Australia.

The contract, valued at approximately €2.7 billion, marks a historic milestone as the largest defense export agreement in Australia's history. Delivery is expected to get underway in 2025.

(Photo : Image via Rheinmetall)

Germany's historic defense deal with Australia involves supplying 123 Heavy Weapon Carrier vehicles, bolstering combat capabilities and fostering stronger bilateral ties amid evolving geopolitical dynamics.

Germany to Add 123 More Heavy Weapon Carriers

Rheinmetall, a leading German automotive and arms manufacturer, has been entrusted with the task of supplying these state-of-the-art vehicles. The Heavy Weapon Carriers, known as 'Schwerer Waffenträger Infanterie,' are designed to provide direct tactical fire support for infantry units, effectively replacing the Wiesel tracked vehicle.

What makes these vehicles particularly noteworthy is their role in Germany's new 'medium forces' category, allowing for rapid deployment over long distances and enhancing the country's combat capabilities.

Equipped with advanced weaponry, including the Rheinmetall MK30-2 ABM automatic cannon and a multi-role guided missile system (MELLS) for anti-tank defense, these Heavy Weapon Carriers represent a formidable addition to the Bundeswehr's arsenal.

What This Defense Deal Means for Germany and Australia

Armin Papperger, Chairman of the Executive Board of Rheinmetall AG, expressed pride in the company's selection for this prestigious project. "In order to be able to provide the Army with the required combat vehicles as quickly as possible, we are integrating not only our German but also the Australian sites in our Rheinmetall network," Papperger said.

For Australia, this defense deal holds immense significance beyond economic gains. Australian Prime Minister Anthony Albanese hailed the agreement as a major boost to the country's sovereign defense industry, securing local jobs and contributing to economic growth.

The bilateral cooperation between Germany and Australia, exemplified by this defense deal, highlights the strengthening relationship between the two nations.

"This would be one of the largest Australian defense exports in the country's history and supports Rheinmetall's goal to further develop the capabilities of the Australian defense industry and integrate it into the company's global supply chains," John Abunassar, head of Rheinmetall's Vehicle Systems Division said.

This landmark agreement also reflects broader geopolitical dynamics, with Germany and its NATO allies ramping up defense spending in response to evolving security threats.

Following Russia's invasion of Ukraine, Germany announced a new defense policy, including a 100-billion-euro defense fund aimed at modernizing its armed forces. Rheinmetall's contract to supply Heavy Weapon Carriers to the Bundeswehr aligns with these efforts to bolster defense capabilities in the face of emerging challenges.

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