The Defense Ministry signed two major agreements with Elbit Systems on Tuesday, totaling approximately NIS 1 billion, as part of a strategic effort to strengthen the IDF’s self-sufficiency and operational readiness.
The deals, signed by Defense Ministry Director-General Maj.-Gen. (res.) Eyal Zamir and Elbit Systems CEO Bezhalel Machlis are expected to bolster the country’s domestic defense manufacturing capabilities.
The agreements are part of an overarching initiative inspired by lessons learned from recent military conflicts, the ministry said.
It added that the contracts were the result of in-depth planning aimed at securing long-term supply stability for critical defense resources.
The first agreement, overseen by the ministry’s Department of Production and Procurement, focuses on the purchase of thousands of heavy air munitions to enhance the IDF’s strike capabilities.
This boost in locally sourced munitions is designed to support sustained military operations in all theaters of combat.
The second deal, developed in coordination with the Directorate of Defense Research & Development (DDR&D) and the ministry’s Planning Department, involves the construction of a national raw materials facility.
The new plant will produce materials that were previously imported and is expected to reduce reliance on foreign suppliers while strengthening the domestic supply chain.
Equipped with advanced technology, the facility will play a critical role in reinforcing the defense industry.
Economic growth and self-sufficiency
Defense Ministry officials emphasized that the agreements reflected the government’s commitment to its “made in Israel” policy, which prioritizes homegrown production and partnerships with local defense companies.
The ministry highlighted that the initiative would not only secure vital defense assets but also stimulate economic growth and provide employment opportunities across the country.
Speaking at the signing ceremony, Zamir said the agreements represented a pivotal step toward securing the military’s autonomy.
“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 before 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,” he said.
Machlis underscored the company’s commitment to supporting the army’s evolving needs.
“We are honored to be a partner in strengthening Israel’s defense resilience through the ‘blue and white’ [made in Israel] 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 families,” Machlis said.
The ceremony was attended by senior officials, including Planning Department head Itamar Graff, Maj.-Gen. Eyal Harel of the IDF Planning and Force Build-Up Directorate, Zeev Landau, the Defense Ministry’s deputy director-general, Elbit Systems Land Division general manager Udi Vered, and DDR&D deputy director Dudi Ovadia.