The modernized M1E3 Abrams is expected to feature integrated armor protection that could include composite materials and enhanced capabilities to reduce its thermal and electromagnetic signatures.

The United States Army awarded General Dynamics Land Systems (GDLS) a $150 million contract to support the Abrams Engineering program, which further supports the development of the M1E3 Abrams modernization program. Work will be carried out by GDLS at its facilities in Sterling Heights, Michigan, and is scheduled to be completed by June 30, 2027.

The program is being funded under the Army’s fiscal year 2025 (FY25) research, development, test, and evaluation funds, Army-Technology.com reported.

The contract could be a big win for GDLS, as it comes just weeks after the Army cancelled the M10 Booker “light tank” project.

Here’s What We Know About the M1E3 Tank So Far

Nearly two years ago, the United States Army announced it would not roll forward with the development of the M1A2 SEPv4 upgrade for its M1A2 Abrams main battle tank (MBT). Instead, the service announced it would focus on the M1E3 instead. Although it incorporated some of the technology developed for the SEPv4, the goal was to produce a next-generation tank that would remain viable on the battlefields of the 2040s and beyond.

“The Abrams Tank can no longer grow its capabilities without adding weight, and we need to reduce its logistical footprint. The war in Ukraine has highlighted a critical need for integrated protections for soldiers, built from within instead of adding on,” Major General Glenn Dean, program executive officer for Ground Combat Systems, explained in September 2023.

The Army also announced at the time that it would continue to “produce the M1A2 SEPv3” under a “reduced rate” while it transitions to the M1E3 models. The current timeline has called for the M1E3 to reach Initial Operational Capability (IOC) by 2030.

The US Army hasn’t disclosed the design requirements of the M1E3. However, it is expected to incorporate a hybrid electric drive, as well as a new and possibly heavier main gun equipped with an autoloader. At the same time, the weapon can also fire more advanced ordnance, including maneuvering hypersonic and gun-launched anti-tank guided missiles.

The modernized Abrams is expected to feature integrated armor protection that could include composite materials and enhanced capabilities to reduce its thermal and electromagnetic signatures, as well as improved command, control, and networking capabilities. It could be equipped with autonomous systems and artificial intelligence (AI) applications. Moreover, the MBT may offer the ability to operate and pair with robotic vehicles in a way similar to the “loyal wingmen” drones that could support the US Air Force’s sixth-generation fighter aircraft.

The M1A2 Tank Is Getting Upgrades, Too

Even as the US Army may be looking to the future with the M1E3, it isn’t simply moving on from the M1A2. The US Army continues to operate more than 4,600 M1 Abrams across all models, with nearly half that number in reserve.

The service has responded to the heavy losses of the older M1A1s in Ukraine, noting that the MBTs proved vulnerable to modern anti-tank guided weapons (ATGW) and drones. Russian artillery has also been responsible for the loss of multiple Abrams.

The Army has noted the threat from strikes above and to the rear of the tank, and is responding by enhancing the protection to the turret. According to the Army’s newly released Procurement of Weapons and Tracked Combat Vehicles (W&TCV, Army) report for 2026, more than $107 million is being allocated to provide 1,500 “Top Attack Protection” (TAP) add-on armor systems. These could essentially be a more polished version of the so-called “cope cages”—latticed hoods that Russian and Ukrainian forces have been welding onto their tanks and armored vehicles to protect against drones, and, to a lesser extent, overhead missiles.

Per the report, the new armor “is strategically placed over crew compartments and hatches, working in tandem with the base vehicle armor to mitigate damage from overhead threats.” It is “most effective against Explosively Formed Projectiles and Shaped Charge Jets,” the Army’s Fiscal Year 2026 (FY26) Justification Book explained.

In addition, upwards of 400 of the tanks will receive a “stealth-enhancing” paint, which is designed to reduce their infrared and thermal profiles, making it harder for a drone to lock onto the vehicle.

The US Army will provide sufficient passive upgrades on the MBTs, including add-on armor and paint, for four full Armored Brigade Combat Teams.