Israel Secures Billion-Shekel Elbit Agreement to Enhance Defense Independence

Israel is taking a major step toward defense self-sufficiency, signing a one-billion-shekel ($275M) deal with Elbit Systems to produce thousands of heavy air-to-ground bombs and establish a national raw materials factory.

The agreement, signed by Defense Ministry Director General Eyal Zamir and Elbit CEO Bezhalel (Butzi) Machlis, will significantly reduce Israel’s reliance on foreign arms suppliers, a necessity underscored by recent export restrictions imposed on Israel during wartime.

A key component of the deal is the construction of a new raw materials factory in southern Israel, which will manufacture energetic materials required by all branches of Israel’s defense industry. This move comes after international arms suppliers, including the United States, declined to provide Israel with heavy bombs exceeding one ton, prompting the government to accelerate efforts toward full manufacturing independence.

Zamir emphasized the long-term strategic importance of the agreement:

“Today, we are laying the foundations for expanding manufacturing independence in two critical areas for the IDF’s operational sustainability domestic production of heavy air munitions and establishing a national raw materials plant. Both agreements will ensure sovereign capability in producing bombs and munitions of all types.”

While Israel initiated this project before the war, the conflict’s realities led to an accelerated timeline. Restrictions on weapon and component exports during the war highlighted vulnerabilities in relying on external suppliers.

“This is a central lesson from the war,” Zamir noted. “It will enable the IDF to continue operating powerfully in all theaters.”

Israel has been investing heavily in advanced defense technologies, with Elbit playing a key role. In October, the Defense Ministry signed a two-billion-shekel contract for Magen Or, a laser-based missile defense system, developed in collaboration with Elbit and Rafael.

This latest deal reinforces Israel’s long-standing strategy of military self-reliance, ensuring the IDF has uninterrupted access to the weapons and materials necessary for national security.

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