BBC News Published image copyrightRBSL image captionThe Challenger 3 tanks will replace the existing Challenger 2 vehicles as part of an overhaul of the British Army An £800m contract has been agreed to supply the Army with 148 upgraded, fully-digitised tanks as part of a major overhaul of the armed forces. The vehicles will be produced at the Rheinmetall BAE Systems Land (RBSL) plant in Telford, Shropshire. Under the military restructure, announced in March, the overall number of tanks will be cut from 227. The tank contract is part of a defence review which will see the Army's size reduced to 72,500 soldiers by 2025 as part of an increased focus on drones and cyber warfare.