The Treaty of Versailles (1919) expressly forbade the newly-created German Republic from the developing and manufacturing of tanks; in fact, paragraph 24 went so far as to state that any kind of armoured vehicle capable of being deployed for military use, would result in a 100,000 mark fine along with up to six months imprisonment. It was therefore with the clandestine assistance of the Soviet Union that German military and industrial engineers were able to circumvent the Treaty in order to develop tanks for the Army. The two champions of the new tactical theories for the use of tanks on the modern battlefield were General Lutz and Lt. Colonel Guderian of German Army. Today, Lutz is lesser known due to Guderian being more of the public face of the promotion of the tactical theory. Guderian is rightly credited with the creation of the concept of the Panzer Corps, used to devastating effect during World War II, especially as part of the Blitzkreig doctrine. With the election to power of Adolf Hitler and his Nazi party in 1933, the army received what amounted to a blank cheque for rearmament. Hitler's experiences during the Great War had left him, like many others who experienced the slaughter on the Western Front, determined to maintain movement on the battlefield and the massed ranks of an armoured spearhead working in union with the supporting infantry (as prescribed by Guderian) provided the perfect solution.

The Panzer I was initially seen as the perfect vehicle to allow the crews to be trained for battle, with the intention of progressing the crews onto larger, more powerful vehicles for use in combat. First produced in 1934, the Panzer I can trace its origins to the Carden Loyd Carrier, which was produced by the British, from which an easy comparison can be made in terms of the arrangement of the tank's suspension. In addition to providing a platform for the training of crews, the Panzer I also gave German industry the opportunity to prepare for mass production. The first variant was armed with a pair of MG 13 machine guns mounted in a rotatable turret, with later versions having one of the guns replaced with a 20 mm cannon. The tanks were under-armed and poorly-armoured even by the standards of 1939; furthermore, the suspension (while adequate for a vehicle of the size and weight of the Carden Loyd) failed to offer the kind of stability required. The engines were also prone to overheating. The Panzer I had a crew of two with the driver located in the hull and the commander, who also acted as the gunner, in the turret. Communication between them was achieved by the use of a voice pipe. In 1936, the 'B' variant was introduced which succeeded in eliminating the previous issues and was deployed in 1939-1940. In addition to the standard tank, a command variant was produced; the turret was replaced by a fixed extension to the hull to house the commander and additional radio equipment; close protection was supplied by a single MG 13.

During the Polish campaign in World War Two, Germany could field some 2,700 tanks, of which some 2,040 were the Panzer I. By the time of the Battle of France in May 1940, Germany was able to deploy some 2,574 tanks in total; however, only 523 were Panzer I's .

Shown here is a single track link from a Panzer I, which was recovered from the area of the Ardennes in Belgium. As can be seen from the images, it shows clear signs of damage.