London Daily

Focus on the big picture.
Thursday, Nov 20, 2025

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
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
×