Israel Strengthens Defense Independence With Billion-Shekel Agreements

The Israel Ministry of Defense (IMOD) announced the signing of two major agreements with Elbit Systems, totaling approximately NIS 1 billion. The agreements, designed to bolster the Israel Defense Forces’ (IDF) operational capabilities and manufacturing independence, were formalized on Tuesday by IMOD Director General Maj. Gen. (Res.) Eyal Zamir and Elbit Systems President & CEO Bezhalel (Butzi) Machlis.

The first agreement focuses on the supply of thousands of heavy air munitions, managed by IMOD’s Defense Procurement Directorate (DPD). The second agreement involves establishing a national raw materials plant to produce essential energetic materials, previously sourced from abroad. This facility will enhance Israel’s defense industry, reduce reliance on imports, and strengthen domestic production.

“These agreements lay the foundation for expanding manufacturing independence in two critical areas for the IDF’s operational sustainability,” said Maj. Gen. (Res.) Eyal Zamir. “We initiated this move before the war but accelerated it during it. Initial capabilities will gradually expand until we achieve full independence.”

The deals align with the IMOD’s “Blue and White” policy, promoting local manufacturing while strengthening the economy and creating jobs. Bezhalel Machlis praised the partnership, stating, “Elbit Systems is proud to contribute to Israel’s defense and economic development.”