After losing out on bids in Europe to North Atlantic Treaty Organization (NATO) allies, Hanwha Aerospace is zeroing in on the U.S. self-propelled howitzer market. The rivals are again NATO member countries, but analysts say the battleground being the United States—and the U.S. Army's favorable stance toward Korea—means there is a chance to win orders.
According to the defense industry on the 13th, the U.S. Army plans to select, within this month, candidates for prototype production and test evaluation for its next-generation self-propelled howitzer (MTC) development program. The MTC is a mobile tactical gun that will replace the M777 155 mm towed howitzer currently operated by the U.S. Army. The Army plans to receive prototypes from the selected companies, conduct its own evaluations, and then choose a final mass-production contractor.
The United States is accelerating the MTC introduction because the operational concept of self-propelled howitzers has changed since the Russia-Ukraine war. As positions are exposed in real time by drones and radars, the ability to move immediately after firing is required. Accordingly, the U.S. Army plans to introduce a next-generation mobile gun that is lighter than the existing Paladin self-propelled howitzer, can complete firing preparations within 40 seconds, and can fire 3 to 6 rounds per minute.
Funding is also in place. According to the Army's budget proposal submitted to Congress for next year, the artillery research and development budget that includes the MTC was increased 824%, from $76.77 million last year to $709.19 million (about 1.065 trillion won). Funds that had been slated for upgrading the existing Paladin self-propelled howitzer were reallocated to the MTC and the ammunition carrier program.
The U.S. Army plans to use the secured funds for test evaluations, securing prototypes, and development. If the budget is finalized, execution will begin in October. If development is approved, observers say production of the new self-propelled howitzer could exceed 500 units.
The Army issued a request for information (RFI) for this project in April last year. The RFI included domestic production of the platform, a high level of protection, and the ability to use U.S.-made ammunition. Companies that responded included Hanwha Aerospace, Germany's Rheinmetall, U.S.-based GDLS, Israel's Elbit Systems, and the United Kingdom's BAE Systems.
The United States has recently shifted its strategy from simply buying weapons from allies to incorporating allies' production capacity into the defense supply chain. In a report last month, the Center for Strategic and International Studies (CSIS) said, "If the United States fights a prolonged war with China, it lacks the capacity to produce ammunition and equipment," and added, "To solve this, it must leverage allies' production bases."
Industry officials therefore believe the United States will focus on actual development and production capabilities and supply-chain buildout, rather than the nationality of the self-propelled howitzer manufacturer, when selecting the final contractor. For Hanwha Aerospace, which lost out on orders in Europe to NATO allies, this could be seen as a more favorable situation.
Hanwha Aerospace entered the 6 trillion won program for Romania's next-generation infantry fighting vehicle (IFV) but came up short when the winner was announced in May. It offered an 80% local production rate and a lower price, but the Romanian government chose Germany's Rheinmetall.
Rheinmetall proposed a 40% local production rate and a higher price than Hanwha Aerospace. After the IFV bid result, many in the defense industry interpreted it as "Romania giving the work to Germany, a fellow NATO member."
In the current U.S. self-propelled howitzer competition, Hanwha Aerospace proposed the K9MH, a wheeled self-propelled howitzer based on the K9A2 platform, the new K9 system. It is a U.S.-tailored model that reportedly meets most of the Army's performance requirements. The company also said it would secure a site in Opelika, Alabama, for an integration and test facility, following its ammunition plant.
Hanwha Aerospace is also highlighting the K9 self-propelled howitzer package as a differentiator from rivals. The K9 package is a comprehensive artillery system that includes the K10 ammunition resupply vehicle alongside the K9MH. The U.S. Army budget includes an ammunition carrier, but competitors including Rheinmetall are said to have excluded an ammunition resupply system.
Analysts say sentiment in the United States is also favorable to Hanwha Aerospace. The United States is strengthening collaboration with Korean corporations through the MASGA (Make American Shipbuilding Great Again) project. At a House hearing in April, U.S. Army Secretary Dan Driscoll also said, "Korea has a very good model with Hanwha."