Nearly three years on and £421m ($534.1m) from the initiation of the Challenger 3 programme, which will see 148 Challenger 2 main battle tanks (MBT) modernised, the British Army is still years away from receiving the first vehicle and initial operating capability (IOC).
Initiated in April 2021 by then Secretary of State for Defence Ben Wallace, the Challenger 3 programme is intended to introduce a fourth generation MBT into the British Army, integrated new technologies into the existing Challenger 2 hull, including a new turret and 120mm smoothbore main gun.
A total of 148 of the British Army’s approximate 200 Challenger 2 MBTs are due to be upgraded, with early prototypes having undergone firing trials in Germany in April 2024.
By the time the programme reaches IOC, currently scheduled to be met in 2027, the average age of the vehicles on which the upgrade will be based will be around 27 years old, with the Challenger 3 tanks expected to serve until 2040, when the base platforms are well over 40 years old.
Full operating capability is not expected to be achieved until 2030.
Programmed to cost around £1.3bn in 2021, should expenditure remain on track it will mean an outlay of £8.8m on each Challenger 2 upgraded to the Challenger 3 variant.
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By GlobalDataBy comparison, a recent Czech deal for additional Leopard 2A4 MBTs came to around $11m per tank, a price similar to a 2023 deal that saw Denmark and the Netherlands acquire 14 Leopard 2A4 tank for Ukraine, at a cost of $172.9m.
Converted to dollars, each Challenger 3 upgrade will cost about $11.2m, or as much as an entire Leopard 2A4.
Challenger 3 timeline: government disclosures
Army Technology provides a timeline highlighting some of the major disclosures from various UK governments since 2021 on the Challenger 3 programme, using answers taken from the official Hansard parliamentary written responses from Conservative officials at the MoD, and latterly Labour from mid-2024.
These are distinct from programme timelines, which chart the course of the platform from concept through to service, and is intended to provide insight into the perspectives of multiple UK governments on Challenger 3 since 2021.
26 April 2021 – As announced in the Integrated Review, the Ministry of Defence will invest £1.3bn in armoured capability by upgrading 148 main battle tanks. To date, £73.3m has been spent on the programme (£7.4m on Concept and £65.9m on Assessment). The programme is currently at the beginning of the Demonstration phase and no Training, Ammunition or Infrastructure costs have yet been incurred.
27 April 2022 – Challenger 3 is scheduled to enter service in 2027. The next major milestone is the Critical Design Review in late 2022.
18 May 2022 – Rheinmetall BAE Systems Land (RBSL) were awarded the Challenger 2 (CR2) upgrade contract based on their timelines to conduct the Demonstration and Manufacture phases for the Challenger 3 (CR3). The initial production vehicles are expected to be delivered in 2027 with all vehicles delivered by 2030.
17 October 2022 – For the Challenger 3 programme, initial operating capability (IOC) is defined as a single squadron of Main Battle Tanks equipped with trained crews. IOC is expected to be achieved in 2027, however work is ongoing to scope options to bring this forward. Full operating capability (FOC) is expected in 2030.
18 January 2023 – The Challenger 3 prototypes will be delivered through 2023 and 2024 for use in demonstration trials. Once the design has been proven it is currently planned that the Challenger 3 tanks will be delivered to the Army from 2027, with Full Operating Capability delivered by 2030. The number of tanks to be delivered is under review.
20 January 2023 – The current Hydrogas suspension units will be replaced with the latest ‘3rd Generation’ Hydrogas system. The transmission that will be fitted to CR3 remains largely unchanged from that fitted to CR2. It will continue with its iterative modification programme to address obsolescence and improve reliability.
3 March 2023 – The Ministry of Defence has allocated sufficient funding for the integration of an Active Protection System onto the Challenger 3 Main Battle Tank.
8 March 2023 – Funding for the integration of an Active Protection System onto the Challenger 3 Main Battle Tank was provisioned alongside the approval of the Full Business Case in March 2021. It would be inappropriate to confirm the amount of funding allocated whilst commercial negotiations with the supplier are ongoing.
11 September 2023 – Having successfully completed its Critical Design Review in January 2023, in line with the contract, Challenger 3 prototype vehicles are now in build at RBSL, Telford, ahead of physical trials starting in 2024. DE&S is actively monitoring progress and supporting RBSL’s wider business development as part of a collaborative drive for success on this vital Army programme.
15 November 2023 – The Field Army have calculated that the average age of the Challenger 2 Main Battle Tank is 23 years and 10 months old.
26 February 2024 – The UK has the necessary facilities to undertake Challenger 3 trials and most of the trial activity will take place in the UK. The first pre-production vehicle was sent to Germany for a small number of trials that use Rheinmetall proprietary ammunition which would not be cost effective to clear on UK ranges for important but limited trial use. The remainder of the Challenger 3 prototypes will undergo full trialling in the UK, including firing trials.
19 March 2024 – Challenger 3 will have the Caterpillar CV12 9A engine which produces 1200hp.
21 March 2024 – The Challenger 3 Main Battle Tank’s core weight will be approximately 66 tonnes, although I am withholding the anticipated all-up weight of the deployable configuration as its disclosure would, or would be likely to, prejudice the capability, effectiveness or security of the Armed Forces.
1 May 2024 – The Challenger 3 Main Battle Tank programme is the first British-built tank in 22 years and supports hundreds of UK jobs in Telford, Gateshead, Bristol and Bovington. Over 60% of the value of the Rheinmetall BAE Systems Land (RBSL) contract will utilise the UK supply chain.
Change of UK government from Conservative to Labour
11 October 2024 – The Challenger 3 programme is an important programme and is on schedule to achieve Initial Operating Capability in 2027 and Full Operating Capability in 2030. The Strategic Defence Review will guide future capability development priorities, to ensure the United Kingdom is both secure at home and strong abroad – now and for the years to come.
11 October 2024 – During his visit to Army HQ on 19 September, the Secretary of State for Defence met members of the Army Board and discussed a range of issues including the Army’s Equipment Plan supporting the Army’s modernisation. The Challenger 3 programme remains an important programme and remains on schedule to achieve Initial Operating Capability in 2027 and Full Operating Capability in 2030.
28 October 2024 – As announced by the Secretary of State for Defence, the British Army will deploy Challenger 3 tanks to NATO’s eastern border along with armoured vehicles in future years. However, details relating to the fielding plan for Challenger 3 are yet to be confirmed.
16 December 2024 – Through the Armour Main Battle Tank programme, expenditure for Challenger 3 Main Battle Tank delivery as of 13 December 2024 is around £421.167m.
British Army: Challenger 3
As the British Army sought to address a number of obsolescence issues and modernise its vehicle fleets, attention turned to the venerable but ageing Challenger 2, in service since 1998 and in need of either an upgrade or outright replacement.
Most problematic of all was the uniqueness of the Challenger 2s main gun, a rifled L30A1 that no other force in Nato operated. The solution was to find a way to bring into service the Rheinmetall’s L55A1 120mm smoothbore gun that has become ubiquitous throughout the Alliance.
Options were discussed, with the decision taken to upgrade a portion of the small fleet of Challenger 2 MBTs to the Challenger 3 variant.
The outcome of the Strategic Defence Review initiated by the new UK Labour government, due to be released in the Spring of 2025, will likely provide clarity on a plethora of procurement programmes, with every expectation that some will be altered, or potentially axed, with significant defence cuts already having taken place.
