German defense giant Rheinmetall is seeking approximately €12 billion (around $14 billion) from the German government to take over the troubled F126 frigate project, according to a media report on Wednesday. This would increase the total cost for the six warships to about €14 billion.

The report, citing informed sources, stated that Rheinmetall's naval division proposed the terms after conducting a six-month due diligence review of the program. Under the plan, Rheinmetall would replace Dutch shipbuilder Damen as the main contractor for the delayed project.

Rheinmetall's proposal includes inflation adjustment clauses, with delivery of the first vessel expected in 2032—four years later than originally scheduled. A spokesperson for the company's naval division indicated that the first frigate could be delivered by 2032, with the possibility of further acceleration under specific conditions.

A German Defense Ministry spokesperson confirmed on Wednesday that discussions regarding the frigates are ongoing, while acknowledging that Damen has fallen significantly behind schedule on the F126 contract. In March of this year, Rheinmetall acquired NVL (Naval Vessels Lürssen), a shipbuilding subsidiary of the Lürssen Group, which is expected to assume the role of main contractor.

Concurrently, Berlin plans to purchase smaller, readily available MEKO A-200 frigates from Thyssenkrupp Marine Systems at an estimated cost of €1 billion per vessel. Sources suggest this arrangement is being used as leverage in negotiations with Rheinmetall.

Notably, Rheinmetall had projected potential order intake of €80 billion for the full year in early 2026. The initial F126 contract was signed in 2020, originally covering four frigates before being expanded to six, making it one of the German Navy's largest shipbuilding programs.