Rheinmetall’s CEO toured a Volkswagen plant set to shut down in the fall, signaling a potential pivot to defense production as the company stands to benefit from increased defense spending driven by Trump’s tariffs on imported cars.

On March 12, 2025, Rheinmetall's CEO announced that Europe’s planned increase in defense spending—partly in response to a perceived withdrawal of US defense commitment under President Donald Trump—heralds a new era of rearmament. The company expects a significant boost in its sales as geopolitical shifts encourage European nations to invest more heavily in their military capabilities.

Rheinmetall AG has been awarded a 1.96 billion USD contract to supply a mobile communication and directional radio management system under the Tactical Wide Area Network for Land Based Operations (TaWAN LBO) to the German Armed Forces, as part of a 10‐year framework agreement.

According to OpenSecrets data, Rheinmetall Defence spent $420,000 on lobbying activities in 2024, indicating an active effort to shape political processes in favor of defense industry interests.

Rheinmetall's South African facility has come under fire for allegedly exploiting export control loopholes, with reports suggesting its artillery shells are being re-exported to conflict zones. The allegations have spurred protests, activism, and criticisms of regulatory failures, highlighting ethical concerns in its arms trade practices.

Allegations by South African media and public scrutiny suggest that Rheinmetall, through its joint venture Rheinmetall Denel Munition, may be facilitating indirect arms transfers—potentially to conflict zones such as Israel—while maintaining a lack of transparency regarding government contracts and supply chain practices. This opacity raises concerns about corporate accountability and alignment with broader human rights and anti-authoritarian values.

The LobbyFacts data reveals that Rheinmetall AG is involved in multiple high-level lobby meetings with EU Commission officials between December 2014 and December 2024. A note from 1 July 2024 indicates a duplicate meeting entry under investigation, suggesting procedural irregularities in recording these interactions.

Rheinmetall AG has published a Declaration of Principle outlining its comprehensive approach to human rights and environmental due diligence. The document details internal risk management, employee training, supplier audits, and clear remedial measures in compliance with the German Supply Chain Due Diligence Act (LkSG). These measures are intended to ensure ethical practices both within its own operations and across its supply chain.

The entry in the German Bundestag lobby register indicates that Rheinmetall AG conducts its own in-house lobbying. The company maintains a direct, transparent dialogue with government and parliament through its Berlin representation, underscoring its approach to political engagement.

Rheinmetall AG outlines its approach to political engagement by maintaining representative offices in Berlin, Koblenz, and Brussels, and emphasizes its commitment to responsible conduct, integrity, and legal compliance in political contributions. The company actively participates in discussions with political, economic, and societal representatives, and collaborates with organizations and trade unions to find sound solutions.

Rheinmetall AG has released a detailed policy statement committing to respect human rights, ensure fair labor practices, and protect the environment across its operations and supply chains. The document outlines robust measures for due diligence, risk management, supplier engagement, and transparency in reporting, reinforcing the company's commitment to ethical business practices.

An inquiry by the Association of Ethical Shareholders Germany raised questions about whether Rheinmetall AG or its subsidiaries made political donations between 2018 and 2020. The article also highlights controversies surrounding the company's arms exports, climate protection measures, and dividend policies during short-time working periods, suggesting potential issues in transparency and political engagement.

Rheinmetall has reinforced its commitment to social responsibility by adopting a Global Framework Agreement that emphasizes fair working conditions, human rights, and robust employee representation. Negotiated with the European Works Council and involving key labor organizations such as IG Metall and IndustriALL Global Union, the agreement outlines improved regulations for international human rights and inclusive, respectful workplace practices.