The defense ministries of Lithuania and Germany have signed a framework agreement to enhance the Lithuanian army with Leopard 2A8 tanks. This agreement was signed by the heads of the defense departments, Dovilė Šakalienė and Boris Pistorius, and includes a total of 44 tanks.
This number significantly differs from previous plans discussed in Vilnius, as just last October, there were discussions about having up to 100 Leopard 2A8 by 2030. However, they were unable to reach a fully-fledged NATO tank battalion of 54 vehicles.
Most likely, the issue does not lie with Lithuania's capacity as a purchaser. By 2025, the country will allocate 3.03% of its GDP to defense spending—over 2.5 billion euros—along with an additional increase of 0.8 billion euros to the defense loan limit.
The reasons for the reduction in plans have not been disclosed. However, from the perspective of Defense Express, we can cautiously speculate that the problem lies within the production capabilities of the German defense industry. Recently, the Leopard 2A8 has received firm orders from Norway for 54 new Leopard 2A7 tanks, 76 Leopard 2A8 for the Czech Republic, and 46 Leopard 2A8 for the Netherlands. Additionally, Germany has ordered 123 of the same tanks in two batches of 18 and 105 units in May 2023 and July 2024, respectively.
All export contracts and the first part of the German order have a delivery timeline extending to 2030. Currently, KMW (part of KNDS) already has a portfolio, including Lithuania’s order, totaling 238 new tanks over the next five years—40 units per year. This figure was specifically mentioned as a benchmark for assessing Leopard 2A8 production in Germany.
This situation could very well be the primary limiting factor for broader military enhancements. At the same time, Vilnius will need to prepare a substantial budget for 44 Leopard 2A8 tanks. If we consider the plans of the Netherlands, which after a 16-year hiatus will have their own tanks, they are allocating 2.5 billion euros to acquire and make operational 46 tanks.
Of this, approximately 1.34 billion euros will go towards the tanks themselves, based on the Bundeswehr contract with a price tag of 29.2 million euros per unit. The remainder covers ancillary expenses, including all necessary infrastructure.
Nonetheless, for Lithuania, acquiring Leopard 2A8 tanks represents a significant breakthrough in terms of defense capability, as the country currently has no tanks at all. When considering all three Baltic states collectively, they possess only three Latvian T-55 tanks for training purposes.