Canada invests $1.1 billion to upgrade and modernise German Leopard 2 tanks, with deliveries to begin in 2030

Canada intends to spend more than $1 billion to modernise Leopard 2 tanks. At the same time, the future of the tank fleet as a whole remains uncertain.

Here's What We Know

Canada recently sent 15 Leopard 2 tanks to Latvia. This is the first overseas mission in more than decades. The debut combat vehicle is expected to arrive in the Baltic country in the middle of next month.

While the German tanks are on their way from North America to Europe, Canada is discussing updating and modernising the Leopard 2. The authorities are ready to sign a long-term contract worth $1.1bn to resolve this issue.

The agreement will be awarded to Krauss-Maffei Wegmann. The deal will include maintenance, modernisation, engineering and technical support as well as supply chain management. The contract is expected to be signed by next spring.

The Canadian Army had 82 German Leopard 2 tanks in service. This year, eight of the combat vehicles were transferred to the Armed Forces of Ukraine, which is fighting the Russian Federation.

Canada plans to invest more than $625 million to extend the service life of the remaining tanks. The money will be used to solve the problems of obsolescence of the Canadian Leopard 2 fleet and improve technology. The programme will also focus on improving protection, surveillance, target detection, firepower and mobility.

Canada intends to release a request for proposals from industry to extend the life of the Leopard 2 sometime in 2028. The first modernised tanks will return to Army service in 2030.

A limited budget is the reason why Canada is unable to purchase new tanks. The country is able to allocate about $3.7 billion annually for defence, but the lion's share of that amount is intended to finance the purchase of fifth-generation F-35 Lightning II fighter jets.

The F-35 purchase is part of the North American Aerospace Defence Command's modernisation plan, which calls for a total investment of nearly $30 billion. Additionally, Canada is buying $4.4 billion worth of P-8 Poseidon patrol aircraft and investing nearly $75 billion in warships over 20 years.

Source: Defence News