German-French defense contractor KNDS has reached an agreement with Sweden’s Defense Materiel Administration to supply the Swedish Army with new and upgraded Leopard 2A8 tanks. The contract also includes the upgrading of Sweden’s CV90 infantry fighting vehicles, Breaking Defense reported. The Swedish government announced the $1.97 billion deal on Thursday.
Under the agreement, KNDS will deliver 44 new Leopard tanks and upgrade Sweden’s fleet of 66 older Leopard 2 models. The new procurement will support the Swedish Army’s expansion of its tank brigades from two to four, significantly enhancing Sweden’s defense capabilities.
Fighting Tank Upgrade
“We are getting 154 modern tanks and refurbished combat vehicles with these orders, which strengthens our defense capability,” Defence Minister Pal Jonson said in a government press release announcing the deal. The new Leopards, designated as Stridsvagn 123, are expected to be delivered within three years, starting in 2028.
Sweden’s Leopard 2 tanks, known as Stridsvagn 122, will undergo the most extensive upgrades since their purchase in the early 2000s. To enhance their combat performance and extend their service life, the tanks will be refurbished with new cannons and equipped with additional digital tools that match those of the new Leopards.
Tank Brigade Interoperability
By providing Leopard 2A8 standards to the Swedish tank brigades, the KNDS contract aligns these forces with Germany and Norway’s systems. The similarity enhances interoperability, a key goal for NATO following the Ukraine conflict.
Regarding the CV90 upgrades, a spokesperson from Sweden’s Ministry of Defence told Breaking Defense that Stockholm has approved renovations for about 500 vehicles at an estimated cost of $448 million, with completion projected by 2030. In December, BAE Systems also announced new contracts with Sweden and Denmark to purchase new CV90s, valued at $2.5 billion.