Dozens of 155mm shells sit in a facility in Israel. (Elbit Systems)
JERUSALEM — Israel’s Ministry of Defense has signed two deals with Haifa-based Elbit Systems totalling more than $274 million to secure more munitions and to increase raw material production lines intended to make the country more self-sufficient.
“These strategic agreements are crucial for enhancing the IDF’s operational endurance and force build-up capabilities,” the ministry said in a statement on Tuesday.
Eyal Zamir, the Israeli Ministry of Defense’s Director General, said that the two contracts lay “the foundations for expanding manufacturing independence in two critical areas for the IDF’s operational sustainability” and said the two agreements are initial investments in capabilities that “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.”
Zamir’s assessment comes a day after the Israeli Prime Minister received a report from the Nagel Committee that was empaneled over the summer to assess future threats to the nation. The committee, chaired by Reserve Brig. Gen. Yaakov Nagel, recommended that Israel always be prepared to defend itself independently and highlighted the importance of armaments and self-sufficiency.
“Wars are won primarily in the military buildup phase, necessitating maximum investment alongside operational readiness,” the committee noted in its report.
The ministry did not specify the amounts for each contract with Elbit, but it did say that the first contract relates to the support of “thousands of heavy air munitions.” For its war in Gaza, which began with Hamas’s attack on Israel on Oct. 7, the IDF has partly relied on a stream of US munitions. But the geopolitical fragility of that normally ironclad arrangement was briefly called into question when the US reportedly paused a shipment of 2,000-pound bombs over Israel’s conduct in Gaza. And though the arms shipments have continued, including a new White House approval of some $8 billion in arms at the end of December, it’s apparent Israel is seeking a domestic fallback.
Similarly, the second contract in the deal is focused on establishing a “national raw materials plant to produce raw materials that were sourced mainly from abroad before the war,” the ministry said in a statement. “The new facility will feature advanced production lines for energetic materials that Israel’s defense industry uses. This project is expected to strengthen domestic manufacturing independence and reduce reliance on imported raw materials.”
“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,” Zamir said.
The ministry noted that the two agreements are part of the larger policy to support “Blue and White” manufacturing in Israeli-owned defense manufacturing. “The projects are expected to strengthen the economy, expand domestic production lines, and ensure optimal response to the IDF’s current and future operational needs,” the ministry added.
Early in the war the ministry began to focus on the need to ramp up domestic production and secure supply lines, preparing for a long war effort that had already strained Israel’s economy because 300,000 people were called up for IDF service when the war began.
Elbit was already a major supplier of munitions for the IDF prior to the war, receiving a major contract of $760 million in May 2023. In November 2024 Israel also finalized plans to acquire five new warships locally.
