Defense analyst Nicholas Drummond has highlighted the escalating costs of main battle tanks, warning that current procurement practices are unsustainable.
In a post shared on social media, Drummond stated that small order quantities since the 1990s and inflation have driven the cost of a single tank to over €20 million.
“Today, thanks to small order quantities since 1990 and inflation, main battle tanks cost more than €20 million each. This is unsustainable,” Drummond wrote.
Drummond proposed that NATO’s 30 European member states collectively order 300 tanks annually, resulting in a production total of approximately 9,000 units over 30 years. This approach, he argued, could substantially reduce unit costs, making modern tanks more affordable for member nations.
Today, thanks to small order quantities since 1990 and inflation, main battle tanks cost more than €20 million each. This is unsustainable. If all 30 European members of NATO agreed to order 300 new tanks or some 9,000 in total, this would dramatically reduce unit cost. pic.twitter.com/6zxgxRBEcY
— Nicholas Drummond (@nicholadrummond) January 9, 2025
The cost of advanced military hardware has risen sharply over the past three decades due to limited production runs and inflationary pressures. Tanks, which form a critical part of land-based military strategy, have become increasingly expensive to design, produce, and maintain.
Drummond’s suggestion comes as European NATO members face pressure to modernize their aging armored fleets. A unified procurement strategy could also strengthen NATO’s collective defense capabilities, while offering economic benefits to participating nations.
Joint procurement initiatives are not new to NATO, but coordinating across multiple nations often presents challenges in aligning requirements and timelines. However, proponents of such plans argue that collective purchasing can standardize equipment, enhance interoperability, and reduce overall costs.