Rolls-Royce has secured an order from defence company KNDS to deliver more than 300 mtu MB 873 Ka-501 engines for new Leopard 2 battle tanks.
The drive systems will support vehicles ordered by Germany, Lithuania, Sweden, the Netherlands, and the Czech Republic.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Rolls-Royce, which announced the contract, has not disclosed the financial terms.
The company plans to begin delivery of the engines in 2026.
Rolls-Royce Power Systems CEO Dr Jörg Stratmann said: “This order is not only one of the largest of its kind in recent decades, but also reflects the challenging security situation we find ourselves in.
“We have recently significantly expanded our capacity for the development and production of urgently needed mtu drive systems for military vehicles and will continue to expand it significantly in order to contribute to improving security in Europe and around the world.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to Rolls-Royce, demand for mtu engines and drive systems has increased due to the altered security environment.
In 2024, contracts with government customers including the militaries of Germany, NATO member states and allied nations accounted for one quarter of turnover within the company’s Power Systems division.
In November of that year, KNDS introduced the Leopard 2A8 model at a demonstration attended by German Defense Secretary Boris Pistorius.
The 2A8 features updated armour and enhanced protection against drones.
Rolls-Royce is expanding its portfolio of military land vehicle drive systems by adding new mtu 199 series variants with up to 12 cylinders and more than 1,300-kilowatt of power for both new vehicles and repowering projects.
In September 2025, the Czech Army committed to the purchase of 44 Leopard 2A8 main battle tanks from KNDS Deutschland, with an option to acquire a further 14 units if needed.
