In 1940, a Leichterpanzer I Gunnhildr was developed with a m/38 5 cm cannon in order to compete against comparable tanks (eg. Matilda, Pz. III and early versions of IV) for use in desert operations.

Development

It was noted that the 20 mm variant of the LePz I (a.k.a. LePz I 38/20) was not sufficent to fight at long range against the comparable Panzer III and IVs (despite being able to destroy in close range by shooting at the turret and on the viewpoints) and cannot penetrate new British tanks (eg. Cromwell, Gun Carrier) due to the maximum penetration of only 50 mm at point blank.

One of the solutions were the Leichterpanzer III, and an upgunned version of the Leichterpanzer I fitted with a 50 mm Durin anti-tank cannon, or a 75 mm Cathedral-Dvalin anti-tank (as the LePz I 40/75), Schurzen/side skirts of 8 mm and a semi-circular turret shield of 12 mm was added.

The 50 mm Durin anti-tank applied used can use the APCBC-HE-136 (Ordinance) with a maximum penetration of 101 mm and a filler of 15 g, or a standard solid shot AP shell of 90 mm maximum penetration.

The engine was uprated by 50 horsepower slightly increaing the maximum speed of 35 km/h, but retains the unforgivable steering ans climbing characteristic.

Explain in Gaijin terms?
A Rank I tank, can be preferably used for urban combat. Retaining its muzzle velocity from the 20 mm Deutschland (KwK 38), it can do well on the sniping role. Hates sloped terrain.