The Israeli Ministry of Defense has entered into two major strategic agreements with Elbit Systems, amounting to a total of $276 million. These agreements include the production of thousands of heavy air munitions and the establishment of a national facility for manufacturing raw materials. The overarching goal is to enhance Israel's independence in defense production and reduce reliance on foreign imports, a key objective outlined in the Ministry of Defense's plan, which was first revealed by Ynet.
This initiative stems from a significant lesson learned during the Gaza war. At certain points during the conflict, the Biden administration delayed the delivery of heavy air munitions to Israel due to sharp disagreements with the Netanyahu government. Additionally, difficulties in sourcing raw materials from foreign suppliers further underscored the urgent need to reduce Israel’s dependency on imported defense supplies.
Strengthening domestic production capabilities
As part of the first agreement, Elbit Systems will supply the Ministry of Defense with thousands of heavy air munitions. The second agreement, led by the ministry's Planning Directorate and MAFAT (Directorate of Defense Research and Development), focuses on establishing a national manufacturing facility for raw materials. This facility will produce energetic materials critical to Israel’s defense industries, including those required for "explosive chemistry" processes essential to bomb production.
(Video: Elbit Systems)
"Today, we are laying the foundation for expanding Israel’s production self-sufficiency in two critical areas that are essential for the long-term operational capabilities of the IDF," said Eyal Zamir, director general of the Ministry of Defense, during the signing ceremony at Elbit Systems’ plant in Ramat HaSharon. "These agreements will secure Israel’s independent capacity to manufacture a wide range of bombs and munitions. This historic initiative began before the war but was accelerated during it. We expect to see initial production capabilities in the near future, which will continue to expand until full independence is achieved in both areas."
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Bezhalel (Butzi) Machlis, president and CEO of Elbit Systems, emphasized the company’s commitment to this effort, stating: "Elbit Systems is a full partner of the IDF and the Ministry of Defense in advancing the 'blue-and-white' (colors of the Israeli flag) production policy. We are dedicated to significantly strengthening IDF's self-reliance in munitions production. The deep and longstanding partnership between Elbit and the defense establishment not only contributes to national security but also supports the Israeli economy and provides livelihoods for thousands of families across the country."