Israel has concluded a $183 million multi-year contract with Elbit Systems to deliver air munitions and further expand the nation’s domestic defense production infrastructure. The agreement, issued by the Defense Procurement Directorate of the Israel Ministry of Defense, focuses on locally manufactured munitions, supporting both long-term inventory replenishment and the growth of Israel’s defense industrial base.
Defense Minister Israel Katz framed the deal as both a national security imperative and an economic investment, noting the contribution of Israeli defense industries during two years of sustained multi-front operations. He stated that increasing local production capacity is intended to strengthen supply chain independence, reduce reliance on external suppliers, and enable sustained military modernization in anticipation of a prolonged period of complex security challenges.
The Elbit agreement is part of a wider series of multi-year procurement programs covering air, land, and other operational domains, designed to restore stockpiles while expanding industrial output. The ministry also views these initiatives as a foundation for future export growth and broader economic resilience.
The latest air munitions contract builds on years of expanded investment in domestic weapons manufacturing. In 2024, Israel accelerated procurement of precision-guided bombs and munitions through multiple Elbit contracts, driven by operational experience and the requirement for larger reserves. At the same time, Rafael increased production of Iron Dome interceptors and scaled the C-Dome naval air defense system in 2025, while Israel Aerospace Industries continued expanding long-range strike and missile production with government support to
