The Australian Government has announced the commencement of a formal negotiation process to export the Boxer combat reconnaissance vehicles to Germany.

The beginning of this deal was marked by the signing of an official letter of cooperation (LoC) between Australian Defence Industry Minister Pat Conroy and German Defence Minister’s parliamentary state secretary Thomas Hitschler.

Signed on 23 March at Parliament House, Canberra, the new deal is expected to involve the transfer of more than 100 Boxer 8×8 multi-role heavy weapon carrier infantry vehicles to Germany.

The vehicles will be manufactured by Rheinmetall at its Military Vehicle Centre of Excellence in Brisbane, Queensland, Australia.

This deal will further allow the engagement of various suppliers across Australia, making it one of the largest defence export contracts for the country.

Conroy said: “This export opportunity would secure well-paid secure jobs in Queensland and across the country, helping to build Australia’s defence industry and boost our economy.

“We are keen to export this world-leading capability to a trusted and respected security partner, and to further strengthen the defence relationship between our countries.”

Following the latest signing, the Australian Department of Defence will now finalise a formal deal with the Germany Ministry of Defence (MoD) and Rheinmetall.

The negotiation will further set up appropriate legal and commercial arrangements for the execution of this effort.

According to the German MoD, obtaining associated parliamentary approvals will ensure the delivery of the first set of vehicles starts from 2025.

Funds for this procurement have been spared from the German Armed Forces special fund.

Once delivered, the new Boxer fleet will gradually replace the German Army’s existing fleet of Wiesel 2 armoured vehicles.