Israel Approves $1.5B Plan to Expand Tank and Armored Vehicle Production
Israel has authorized a $1.5 billion program to accelerate the production of tanks and armored support vehicles as part of a five-year roadmap to strengthen ground forces during the ongoing Gaza conflict.
Announced by Defense Minister Israel Katz and Defense Ministry Director General Maj. Gen. (Res.) Amir Baram, the Armored Vehicle Acceleration Project seeks to expand assembly lines, modernize maintenance depots, and boost local defense industry output. The plan also aims to revitalize manufacturing centers in Israel’s peripheral regions, contributing to broader economic resilience.
The initiative covers the latest Merkava main battle tank with AI-enabled systems, advanced sensors, and enhanced firepower, alongside the Namer tracked APC and the Eitan 8×8 wheeled armored fighting vehicle, both based on Merkava technology.
The push follows the proven performance of these vehicles in the Swords of Iron War against Hamas, during which they collectively covered over one million kilometers in combat since October 2023.
With backing from the Defense Procurement Committee, the project awaits approval from the Joint Committee for the Defense Budget, after which multi-billion shekel procurement contracts will be executed.
