Germany Signs €2B Deal for Spike LR2 Anti-Tank Missiles to Rebuild Bundeswehr Stocks

Germany has signed a major €2 billion contract with EuroSpike GmbH for the procurement of Spike LR2 anti-tank guided missiles (ATGMs), marking one of the largest missile acquisitions in recent German defense history. The deal aims to replenish depleted stocks and modernize the Bundeswehr’s infantry and mechanized formations amid rising security concerns in Europe.

Strategic Context: Rebuilding After Ukraine-Driven Depletion

The order comes as part of Germany’s broader effort to rebuild its military capabilities following years of underinvestment and accelerated depletion due to arms transfers to Ukraine. Since 2022, Berlin has supplied thousands of anti-tank weapons—including older MILAN and Spike variants—to Kyiv in support of its defense against Russian aggression. This has significantly reduced Germany’s own inventories.

The new procurement is funded through the €100 billion Sondervermögen (special fund) established by Chancellor Olaf Scholz in 2022. The fund is intended to rapidly modernize the Bundeswehr across all domains. The Spike LR2 acquisition will directly support the modernization of Germany’s MELLS (Mehrrollenfähiges Leichtes Lenkflugkörpersystem) program—the country’s multi-role light guided missile system used on platforms such as Puma IFVs and dismounted infantry units.

About Spike LR2: Capabilities and Enhancements

The Spike LR2 is a fifth-generation precision-guided missile developed by Israel’s Rafael Advanced Defense Systems. It represents a significant upgrade over earlier variants (Spike-LR/LR1), offering extended range, enhanced lethality, and improved target engagement flexibility.

Range: Up to 5.5 km from ground launchers; up to 10 km from aerial platforms with datalink support.
Warhead: Tandem HEAT warhead capable of defeating ERA-equipped armor; optional multi-purpose blast-fragmentation variant available.
Guidance: Dual-mode seeker combining EO/IR imaging with advanced target tracking algorithms; man-in-the-loop control via fiber-optic or RF datalink.
C4I Integration: Fully networkable with NATO-standard BMS/C4ISR systems; supports real-time video feed and target handoff.

The missile also features improved armor penetration—reportedly over 1,000 mm RHA after ERA—and can engage both static and moving targets under day/night conditions. Its reduced weight (12.7 kg vs ~14 kg for previous versions) improves portability for dismounted units.

EuroSpike GmbH and Industrial Cooperation

The contract was awarded to EuroSpike GmbH—a joint venture between Rafael (Israel), Diehl Defence (Germany), and Rheinmetall Electronics (Germany). Under this trilateral industrial structure, final assembly and integration will occur in Germany, ensuring compliance with national sovereignty requirements while preserving access to Israeli technology.

This structure also enables local supply chain development and job creation within Germany’s defense industrial base. Rheinmetall will likely play a key role in integrating the missiles into existing vehicle platforms such as Puma IFVs or Boxer MRAVs equipped with launcher modules or remote weapon stations compatible with MELLS architecture.

MELLS System Integration

The MELLS system is already deployed across several Bundeswehr platforms including:

Puma IFV: Integrated via turret-mounted launchers; allows rapid engagement from under armor protection.
Boxer MRAV: Configured via FLW200 remote weapon station or modular mission kits for infantry support roles.
Dismounted Infantry: Portable tripod-based launcher systems used by Panzergrenadier battalions.

NATO Interoperability and Export Potential

The Spike missile family is widely adopted across NATO allies including Poland, Lithuania, Estonia, Finland, Romania, Spain, Italy, the Netherlands, Latvia—and most recently Sweden—making it one of Europe’s most interoperable ATGM systems. The commonality facilitates shared logistics chains and joint training opportunities under NATO standards such as STANAG 4586 for UGV/UAV control interfaces or Link-16-compatible C4I networks where applicable.

This large-scale German order may also bolster confidence among other European nations considering additional buys or upgrades to their own Spike inventories—especially given battlefield lessons from Ukraine where ATGMs have proven decisive against armored thrusts when paired with ISR assets like drones or thermal sights.

Export Implications for Rafael & Partners

The deal strengthens Rafael’s position as a leading ATGM supplier globally while reinforcing German-Israeli defense ties. It may also help EuroSpike secure follow-on contracts within NATO’s European pillar as countries seek common solutions that balance performance with industrial participation incentives—a key factor in EU PESCO-aligned programs or EDA-coordinated procurements post-Ukraine war recalibrations.

Tactical Impact on German Ground Forces

The introduction of large quantities of Spike LR2s will significantly enhance tactical flexibility at platoon/company level formations within mechanized infantry units. Key operational benefits include:

Beyond-line-of-sight targeting: Enables engagement without direct visual contact using UAV cueing or forward observer data relays.
Shoot-and-scoot tactics: Fiber-optic guidance allows operators to relocate immediately after launch without compromising missile control mid-flight.
Counters active protection systems (APS): Dual-mode guidance combined with top-attack profile increases survivability against APS-equipped MBTs like Russia’s T-90M or T-14 Armata if encountered in future scenarios.

Dismounted Infantry Empowerment

Dismounted Panzergrenadier squads equipped with portable MELLS/Spike-LR systems gain enhanced reach against enemy armor beyond RPG/Matador-class ranges (~500 m). This aligns with evolving German doctrine emphasizing dispersed maneuver elements supported by precision fires rather than massed formations alone—a shift influenced by Ukrainian battlefield adaptation strategies observed since early 2023 offensives near Bakhmut and Robotyne sectors.

A Step Toward Strategic Readiness Restoration

This €2 billion investment underscores Berlin’s growing recognition that credible deterrence requires not only high-end air/missile defense but robust land warfare capabilities—including scalable precision fires at tactical echelons. As Germany seeks greater leadership within NATO’s eastern flank posture—from Lithuania deployments under eFP to planned brigade-level presence—it must ensure its forces are properly equipped for peer-level threats across domains including armor-heavy engagements seen in Eastern Europe today.

Delivery Timeline & Future Outlook

No official delivery schedule was disclosed at time of writing; however industry sources suggest initial batches could be fielded by late 2026 assuming production ramp-up begins promptly at Diehl/Rheinmetall facilities involved in final assembly. Full delivery may extend into early next decade depending on training cycles and platform integration timelines across multiple Bundeswehr formations simultaneously undergoing modernization upgrades under the Sondervermögen umbrella programs (e.g., Puma S1 upgrade path).