Israel has awarded Elbit Systems a heavy air munition and an arms plant contract to boost the defense force’s operability and modernization efforts.
The agreement was approved as part of Tel Aviv’s objective to “build up” its military capabilities based on experiences from its ongoing conflict with Palestine.
Under the first deal, Elbit will supply the country with “thousands” of undisclosed heavy aerial munitions, while the second requests the company support the development of a national raw materials center to decrease the Israeli defense industry’s reliance on overseas sources.
The Israeli Ministry of Defense highlighted that the contracts serve as a critical part of the government’s “Blue and White” policy which promotes the expansion of indigenous production lines, industrial independence and collaboration, and rapid assistance to the Israeli Defence Forces (IDF).
Investment for the projects amounts to 1.5 billion Israeli new shekels ($409.5 million), the defense agency noted.
“Both agreements will ensure sovereign capability in producing bombs and munitions of all types,” Israeli Defence Ministry Director General Eyal Zamir stated. “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.”
Israel partnered with Elbit Systems for a separate initiative in December 2024 to supply the IDF with $130 million worth of advanced communication systems.
The same month, Elbit accepted a contract to provide undisclosed types of drones and autonomous systems for the Israeli military.
