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                                                                                    Updated January 21, 2025
The Army's M-1E3 Abrams Tank Modernization Program


Background
The M-1 Abrams Tank (Figure 1) is designed to maneuver
under fire and destroy enemy armored forces on the
battlefield by means of mobility, survivability, and
firepower. The M-1 is named for General Creighton
Abrams, a noted World War II armored battalion
commander  who later served as Army Chief of Staff from
1972 to 1974. M-1 Abrams tanks are the primary major
weapon system in Armored Brigade Combat Teams
(ABCTs). At present, the Active Army has 11 ABCTs, and
the Army National Guard has 5 ABCTs. Each ABCT has
87 M-1 Abrams tanks.

Figure I. M-I A2 Abrams Tank


Source: U.S. Army Acquisition Support Center, https://asc.army.mil/
web/portfolio-item/abrams-main-battle-tank/, accessed September 8,
2023.
The M-1 program began in December 1971. In June 1973,
two contracts were awarded by the Army for prototype
development to the Defense Division of Chrysler
Corporation (which in 1982 became General Dynamics
Land Systems [GDLS]) and the Detroit Diesel Allison
Division of General Motors (GM). In 1988, GDLS was
awarded a contract for the M-1A2 version, and the first M-
lA2s began to enter service in late 1992. The M-1A2 is the
baseline export version of this tank. Export versions feature
a variety of armor and communications packages. The
United States has sold M-1A1 and M-1A2 variants to
Australia, Egypt, Iraq, Morocco, Kuwait, and Saudi Arabia
via Foreign Military Sales (FMS). On January 25, 2023,
President Biden announced that the United States would
provide Ukraine with 31 M-1 Abrams tanks.

Ongoing M- Abrams
Modernization Efforts
M-1 Abrams  modernization efforts have been focused on
fielding a M-1A2 System Enhancement Package (SEP)
Version 3 (v3) and developing a new M-1A2 SEPv4
variant. According to the Army, both M-1A2 SEPv3


production and M-1A2 SEPv4 development began in
FY2018. In FY2020, the first unit was equipped with M-
1A2 SEPv3. In December 2020, GDLS received a $4.6
billion contract for SEPv3 upgrades, which were expected
to be completed by June 2028. For FY2024, the Army
requested $698 million for the Abrams Upgrade Program.

The   New   M-   E3  Abrams
Modernization Program
On September 6, 2023, the Army announced it would
close out the M-1A2 SEPv4 effort and develop the M-1E3
Abrams. The Army's announcement quoted Major
General (MG) Glenn Dean, Program Executive Officer for
Ground Combat Systems, describing the rationale for the
decision:
    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.
The Army  announcement elaborated that the new platform
    [w]ill include the best features of the M-1A2 SEPv4
    and will comply  with the latest modular open
    systems architecture standards, allowing quicker
    technology upgrades and requiring fewer resources.
    This will enable the Army and its commercial
    partners to design a more survivable, lighter tank
    that will be more effective on the battlefield at
    initial fielding, and easier to upgrade in the future.
Regarding M-1A2 SEPv3  production, the Army noted that
    the Army  will continue to produce the M-1A2
    SEPv3 at a reduced rate until production transitions
    to the M-1E3 Abrams.
The Army projects achieving Initial Operational Capability
(IOC) in 2030. The Army's FY2025 budget proposal
submitted to the Office of the Secretary of Defense (OSD)
reportedly included a request for funds to begin M-1E3
design work.

Possbe Features and Capabi ties
ofthe   M-  E3
While the Army has not made public the new M-1E3
requirements, reportedly a 2019 Army Science Board study
on a future tank influenced senior Army leadership to
establish the M-1E3 program. The Army Science Board
study reportedly recommended a $2.9 billion, seven-year
program to develop a fifth generation combat vehicle,
with proposed capabilities including


*  a hybrid electric drive;