Israel strengthens defense independence with billion-shekel Elbit deal
Israel strengthens defense independence with billion-shekel Elbit deal
New factory for raw materials aims to reduce reliance on imports and ensure IDF readiness.
Elbit Systems has signed a deal worth approximately one billion shekels (approximately $275M) with the Israeli Ministry of Defense to produce thousands of heavy air-to-ground bombs for the Israel Defense Forces (IDF) and establish a new national factory for raw materials. The agreement was signed by Defense Ministry Director General Eyal Zamir and Elbit CEO Bezhalel (Butzi) Machlis.
The new raw materials factory, to be built in southern Israel, will feature production lines for energetic materials required by all defense industries in the country. According to the Ministry of Defense, this facility is expected to reduce Israel's reliance on imported raw materials—a critical vulnerability highlighted during the war that began 15 months ago. During that conflict, some countries restricted the export of weapons and key production components, underscoring the need for greater domestic production capabilities.
The deal for air-to-ground bomb production also stems from international arms export restrictions imposed on Israel, particularly by the United States, which has declined to supply bombs weighing a ton or more due to concerns they might be used to strike targets in Gaza located near civilian areas. Director General Zamir stated that the agreement will ensure Israel maintains independent capabilities to produce bombs and other types of armaments. He added that initial capabilities under this deal will be operational in the near future, emphasizing, "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. We initiated this historic move before the war but accelerated it during it. Under both agreements, initial capabilities will soon gradually expand until we achieve full independence in both areas. This is a central lesson from the war that will enable the IDF to continue operating powerfully in all theaters. I want to thank Elbit Systems and its employees for their crucial contribution in providing vital combat equipment to the IDF throughout the war.”
This agreement follows a series of other contracts between the Ministry of Defense and Elbit Systems over the past year. Notably, in late October, the Ministry ordered initial units of Magen Or, an advanced laser-based interception system for rockets and mortar bombs, from Elbit and Rafael. That contract was valued at approximately two billion shekels.
