Israel’s Ministry of Defence has signed a roughly $48 million agreement with Elbit Systems to produce tens of thousands of 155mm artillery shells within the country. Production will be carried out at multiple Elbit sites across Israel, where a large workforce is operating in round-the-clock shifts.
The contract is part of a wider initiative to boost domestic ammunition manufacturing and reduce reliance on foreign suppliers. It comes after a $183 million deal finalized in January for the local production of aerial munitions.
In addition to expanding manufacturing capacity, the agreements aim to rebuild inventories depleted during operations against Hamas, Hezbollah, and Iran, while also enhancing Israel’s future export capabilities. To further support this strategy, the ministry tasked Elbit in January 2025 with establishing a national raw materials facility to produce critical inputs previously sourced from abroad before the Hamas conflict.
The upcoming plant will feature advanced production capabilities for energetic materials, strengthening Israel’s defense manufacturing ecosystem and improving supply chain independence.
