Lithuania’s government is preparing to allocate €461 million ($540 million) for an advance payment on its planned acquisition of German-made Leopard 2 main battle tanks, according to a draft proposal registered by the Finance Ministry on Monday.
The funds will be borrowed by the state to finance the first stage of the program.
Minister of National Defence Dovilė Šakalienė announced in January that Lithuania would make the payment for 44 Leopard 2A8 tanks as part of its effort to establish a tank battalion by 2030. The purchase agreement, signed at the end of 2024, is a key step in modernizing the country’s armored forces.
The Leopard 2A8, manufactured by German defense group KNDS, builds on the earlier Leopard 2A7 model. It features the EuroTrophy active protection system, designed to intercept incoming anti-tank threats, and an advanced all-round situational awareness suite. The tank is equipped with a new passive armor package and a reinforced hull bottom to protect the crew from anti-tank mines and improvised explosive devices.
Lithuania’s planned battalion will be the first in the nation’s history equipped with Western main battle tanks. The Ministry of National Defence has said the Leopard 2A8’s protection, firepower, and mobility will provide the capability needed to meet modern battlefield challenges.
If parliament and the cabinet of President Gitanas Nausėda approve the funding, Lithuania will join a growing number of NATO allies investing in Leopard 2A8 fleets.