London Daily

Focus on the big picture.
Friday, Jan 09, 2026

Britain awards $1 billion contract to upgrade Challenger 2 tanks

Britain awards $1 billion contract to upgrade Challenger 2 tanks

Anglo-German armored vehicle-maker Rheinmetall BAE Systems Land has signed a deal with the British Defence Ministry to upgrade Challenger 2 main battle tanks.
The £800 million (U.S. $1 billion) contract announced May 7 will see 148 British Army tanks upgraded to the Challenger 3 standard.

The British confirmed a cut of 35 percent in its main tank fleet in the recently published integrated defense, security and foreign policy review. At one point, speculation among media and analysts suggested the government was looking to ax the entire Challenger tank force.

The ministry received a major boost to its budget starting this financial year, but it has preferred to focus its spending on domains like space and cyberspace.

Despite that, Britain appears to still be interested in future main battle tank programs, having held discussions with Germany and France to possibly join the Main Ground Combat System project as an observer.

The principal upgrade of the Challenger 2 will involve swapping out the current L30 120mm rifled gun for the high-pressure L55A1 smoothbore cannon. Britain is the only user of rifled ammunition among NATO members.

Other improvements to the tank will include a new digitized turret, improved sights and upgraded protection, among other advances.

Work on the upgrade will primarily take place at the RBSL manufacturing site at Telford, England. The company has invested £20 million improving facilities there. Full operating capability for the tank is planned for 2030, with initial operating capability expected by 2027.

In 2019, then-British Defence Secretary Penny Mordaunt labelled the Challenger 2 as obsolete. The new secretary, Ben Wallace has since said the upgrade represents a significant shift in the modernization of the country’s land forces, given the increased lethality of the Challenger 3 standard.

The Challenger 2 has been in service for more than 25 years, but it has had little in the way of upgrades to improve capabilities in line with allies and potential adversaries like Russia.

Aside from upgrade, RBSL is involved in building several hundred Boxer armored personnel carriers for the Army. The joint venture, formed between Germany’s Rheinmetall and Britain’s BAE Systems in 2019, said the tank deal will create hundreds of skilled jobs at the company and within its supply chain.

The two firms previously offered competing solutions for the upgrade, but that competition ended with the joint venture formation and a subsequent joint offering.

“What a moment for RBSL, for our armed forces and for U.K. prosperity,” said John Abunassar, RBSL’s chairman. “We are delighted to make this announcement and solidify the return of armored vehicle engineering to the U.K. This announcement comes after years of hard work and collaboration with our customer, especially in the recent extraordinary circumstances brought about by COVID-19. ... The British Army will receive a world-class capability.”
Newsletter

Related Articles

0:00
0:00
Close
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
×