Military innovation: Renk draws insights from the Ukraine conflict and envisions the future of battle tanks

Renk Expands into Unmanned Ground Vehicles with ARX Robotics Partnership

Renk, the global market leader in tank transmissions with a market share of around 70%, has announced a significant venture into the defense industry. The Augsburg-based transmission manufacturer has formed a partnership with Munich-based startup ARX Robotics to develop Unmanned Ground Vehicles (UGVs).

This move marks Renk's entry into the segment of new light tanks, with a total weight of around 15 tons. The company is evolving from a transmission manufacturer into a provider of mobility solutions in the defense industry.

The German Armed Forces have plans to acquire around 1000 additional tanks, 400 Puma infantry fighting vehicles, and 2500 wheeled armored vehicles Boxer in the next ten years. Renk is working on new technological transmission solutions for heavy tanks such as the Leopard and the South Korean K2, and is also focusing on the market segment of smaller tracked armored vehicles, capable of speeds up to 90 km/h.

Renk's CEO, Alexander Sagel, is a proponent of UGVs and sees them operating alongside heavy tanks on battlefields in the future. He anticipates investing 500 million euros in capacity expansion at existing sites over the next four to five years for production expansion.

The startup collaborating with Renk to develop UGVs is the Munich-based ARX Robotics. The Mithra operating system from ARX Robotics will be used to develop mobility solutions for the automation and digitization of future fleets. The new vehicles, known as UGVs, could be available as early as 2030.

Listed Renk Group, with 1.14 billion euros in revenue in 2024, has experienced a significant increase in revenue. In the first half of the year, Renk's new business increased by around 47% to 921 million euros. The total order backlog now stands at 5.9 billion euros.

Renk products are used in around 180,000 vehicles, including tanks and ships. The Franco-German defense group KNDS is the largest single shareholder of Renk, with around 19%. The company aims to scale production, expand international reach, and further develop autonomous functionalities with ARX Robotics.

Mobility has proven crucial in combat situations, as demonstrated by experiences from the Ukraine war. Renk is preparing for the next generation of mobility after 2030, with a focus on unmanned and armored ground vehicles. Clarity on the additional quantities of Bundeswehr orders due to the increase in the defense budget is likely to come only at the end of the year or in the first half of 2026. The larger the order, the lower the unit price.

Renk's partnership with ARX Robotics is a strategic move to secure a strong position in the rapidly evolving defense industry. The company's commitment to innovation and expansion is a testament to its leadership in the tank transmission market.

Military innovation: Renk draws insights from the Ukraine conflict and envisions the future of battle tanks