General Dynamics has secured a new $4.6bn fixed-price-incentive contract to deliver M1A2 SEPv3 Abrams main battle tanks for the US Army.

As agreed, General Dynamics Land Systems, a business unit of the company, will produce the latest configuration of Abrams Main Battle Tanks equipped with several advancements.

The company has already received an initial delivery order worth $406m.

The contract works are expected to be completed on 17 June 2028, with locations and funding to be determined with each order.

General Dynamics Land Systems US vice-president and general manager Don Kotchman said: “We are pleased to continue our support to the Army on the modernisation of the Abrams main battle tank.”

The M1A2 SEPv3 tanks will feature communication, sustainability, fire control and lethality and fuel efficiency upgrades. It will also be equipped with an advanced armour and feature a flexible design to accommodate future upgrades.

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Equipped with a 120mm M256 smoothbore cannon, the Abrams main battle tank is developed to defeat enemy armoured vehicles, personnel and low-flying aircraft.

General Dynamics Land Systems focuses on providing design, engineering, technology, production and complete lifecycle support services for land combat vehicles.

Last year, the company installed a new GPS source onto US vehicles in Germany. The technology enables the vehicles to operate even when GPS signals are degraded or denied ensuring operational capability and soldier safety.

Its parent company, General Dynamics employs more than 100,000 employees across the world. Last year, the company generated $39.4bn in revenue.