Israel’s Defence Ministry announced on Tuesday that it had signed agreements worth approximately $275 million with Elbit Systems (ESLT.TA), the country’s largest private arms manufacturer. The deals aim to enhance domestic production of heavy bombs and critical defence raw materials, reducing reliance on imports.
“These strategic agreements are vital for strengthening the Israel Defence Force’s operational endurance and force build-up capabilities,” the ministry stated, emphasizing that reducing dependence on imports is “a central lesson” learned from the recent war in Gaza.
Under the first agreement, Elbit will supply the military with thousands of heavy air munitions. The second deal involves establishing a facility to produce raw materials that have historically been sourced primarily from abroad. While the ministry did not specify the exact raw materials, it indicated they are essential for production of munitions.
“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,” said Eyal Zamir, director general of the defence ministry.
“Both agreements will ensure sovereign capability in producing bombs and munitions of all types.”
Some Western governments have publicly expressed reservations about supplying arms to Israel during the war in Gaza. U.S. President Joe Biden paused shipments of some bombs last year over concern they would be used in built-up areas.
Zamir stated that the shift toward domestic production had begun prior to the Hamas attack on Israel on October 7, 2023. However, the subsequent war significantly accelerated the implementation of these plans.
Elbit Systems (ESLT.O) Chief Executive Bezhalel Machlis reaffirmed the company’s commitment, saying, “We are dedicated to making a substantial contribution to bolstering the Israel Defence Forces’ munitions independence.”
Team BharatShakti
(With inputs from Reuters)
