Defense Ministry Signs NIS 1B Deal with Elbit to Enhance Military Self-Sufficiency

In a major step toward strengthening Israel’s military independence, the Defense Ministry has signed two significant agreements with Elbit Systems, totaling NIS 1 billion. The deals, announced on Tuesday, aim to enhance the IDF’s operational readiness by expanding domestic weapons production and reducing reliance on foreign suppliers.

The agreements, signed by Defense Ministry Director-General Maj. Gen. (Res.) Eyal Zamir and Elbit Systems CEO Bezhalel (Butzi) Machlis, are part of Israel’s broader strategy to ensure long-term supply stability for critical defense resources. The initiative has been shaped by lessons from recent military conflicts, reinforcing the need for self-sufficiency in munitions and raw materials.

The first deal, overseen by the Defense Procurement Directorate, focuses on acquiring thousands of heavy air munitions to strengthen the IDF’s strike capabilities. By expanding local production, the IDF will be better prepared for sustained combat operations on multiple fronts.

The second agreement, developed in collaboration with the Directorate of Defense Research & Development (DDR&D) and the Planning Department, will see the construction of a national raw materials facility. The plant will manufacture energetic materials, previously imported from abroad, ensuring a stable domestic supply chain and minimizing dependency on foreign suppliers. Equipped with cutting-edge technology, this facility is expected to play a critical role in reinforcing Israel’s defense industry.

The Defense Ministry emphasized that these agreements align with Israel’s "Blue and White" policy, which prioritizes homegrown production and local partnerships. This initiative not only secures vital military assets but also boosts economic growth and creates jobs across the country.

Speaking at the signing ceremony, Maj. Gen. Zamir highlighted the strategic importance of the deals.

"We are laying the foundations for greater manufacturing independence in two vital areas heavy munitions production and the establishment of a raw materials plant. These efforts, which began prior to the war and accelerated during it, will ensure that the IDF can operate decisively across all fronts. This is a key takeaway from recent events and a cornerstone of our national defense strategy."

Elbit Systems CEO Bezhalel Machlis reaffirmed the company’s commitment to Israel’s defense resilience, stating.

"We are honored to be a partner in strengthening Israel’s defense resilience through the ‘Blue and White’ policy. Elbit Systems is dedicated to ensuring the IDF’s independence in critical munitions and contributing to economic development and job creation for thousands of Israeli families."

The agreements mark a significant milestone in Israel’s ongoing efforts to secure its defense infrastructure. By investing in local production, the government is ensuring that the IDF remains well-equipped to confront future threats.

Israel continues to lead in defense innovation, securing its future through strategic self-reliance. Share this story and subscribe to our newsletter to stay updated on Israel’s latest security developments.