The European defense industry is poised to witness one of the most significant acquisitions in recent decades. Six European nations, including Estonia, Finland, Sweden, Norway, Lithuania, and the Netherlands, are exploring a joint agreement for the purchase of hundreds of CV90 infantry fighting vehicles. This ambitious undertaking underscores a major strategic shift in the continent’s security efforts, with considerable financial and industrial implications.
A Strategic Alliance for European Security
The joint procurement plan, initiated by six member states, is designed to strengthen Europe’s defense capabilities. Finland, one of the signatories of intent, has already indicated that its individual order would amount to „billions of euros,” suggesting the unprecedented magnitude of the entire contract. This extensive collaboration aims at standardizing essential equipment and increasing interoperability among allied armed forces.
Estonia, the Industrial Engine of the Partnership
Estonian Defense Minister Hanno Pevkur highlighted his country’s proactive role in this program. Estonia, which already operates the Mk III variant of the CV90 armored vehicle, is pushing for significant involvement from its national industry. Pevkur stated that numerous Estonian companies could easily integrate into the CV90 supply chain, contributing to the production of commander cameras, wiring, or welding, depending on the final specifications of the Mk IV design. These comments reveal that the participating nations are still negotiating to establish a mutually agreed standardization of the platform.
Standardization Challenges and the Race Against Time
The decision on the „final version” of the Mk IV design is crucial, considering that the current variant, according to BAE Systems Hägglunds literature (the vehicle’s manufacturer), is equipped with a new engine and boasts a gross weight rating of 38 metric tons, and is also slated to become the first Western IFV to be fitted with a qualified active protection system. A business development director at BAE Systems Hägglunds previously mentioned that harmonizing requirements is essential to agree on a single contract.
Furthermore, Tallinn is pressing for vehicle deliveries by the end of 2030, a date that, as Pevkur acknowledged, does not align with the manufacturer’s expectations and is still under negotiation. „Our wish is to speed up production,” he emphasized, based on assessing additional industrial „opportunities.” The hope is that key decisions will be made „before summer.”
European Funding and the Drive for Strategic Autonomy
The urgency of Estonia’s delivery deadline is dictated by the fact that the Baltic nation is funding this acquisition through a loan from the European Union’s „Security Action for Europe” (SAFE) initiative. This SAFE initiative, with a budget of €150 billion, requires the involvement of „at least two participating countries” to secure joint procurement loans and lies at the heart of Europe’s effort to build strategic autonomy, rearm rapidly, and reduce dependence on US weaponry. Pevkur estimated that Tallinn could order approximately „10 percent” of the total number of CV90s ultimately agreed upon by the European nations. This is shaping up to be the largest deal ever recorded by BAE Systems Hägglunds once finalized.
Lithuania and Slovakia: Concrete Steps on the Armored Vehicle Front
Beyond ongoing discussions, concrete actions are already taking place in the European armored vehicle market. In December, Lithuania committed to acquiring 100 CV90 vehicles as part of this joint procurement. A press release at the time indicated that in-country deliveries, as well as those for „other program participants,” are planned for 2028. Separately from the joint European acquisition, Slovakia has already finalized a $1.4 billion contract for 152 units of the CV90 Mk IV. The rollout ceremony for the first Slovak vehicle is scheduled to take place soon at BAE Systems Hägglunds’ factory in Örnsköldsvik, Sweden, marking another important milestone in the modernization of European armed forces.
