In a significant move to streamline allied defence logistics, the NATO Support and Procurement Agency (NSPA) has placed an initial order for 120mm tank ammunition with Rheinmetall, valued at approximately €200 million. This initial call-off comes under a comprehensive framework agreement, known as a ‘Basic Contractual Instrument’ (BCI), which was established in July 2025.
The framework agreement serves as a master contract, setting out the legal terms, conditions, and technical specifications for various types of 120mm smoothbore ammunition. This structure allows NATO member states and partner nations to procure the munitions directly through the NSPA with significantly reduced administrative burden and lead times. The end recipients of this first ammunition batch are multiple NATO countries, reinforcing the alliance’s commitment to standardized, interoperable weaponry.
Rheinmetall’s 120mm smoothbore technology has been the cornerstone of main battle tank armament for Western forces since its introduction in the field in 1980. It serves as the standard system for Germany’s Leopard 2 and the United States’ M1 Abrams, among other platforms. The enduring success of this calibre lies in its continuous evolution; despite its long service history, the technology retains significant power reserves, enabling Rheinmetall to consistently develop advanced, threat-appropriate ammunition solutions to counter emerging battlefield challenges.
By consolidating demand through the NSPA, the alliance aims to ensure a stable and responsive supply chain for this critical munition. For Rheinmetall, the agreement solidifies its position as a leading global supplier of large-calibre ammunition, ensuring production continuity and fostering innovation in the 120mm segment for years to come.
