Israel signs $183M air munitions deal with Elbit

Key Points
  • Israel’s Ministry of Defense signed a $183 million multi-year contract with Elbit Systems to procure domestically produced air munitions for the IDF.
  • The agreement is part of a broader effort to secure long-term supply, replenish stocks, and expand Israel’s defense manufacturing capacity during sustained conflict.

Israel’s Ministry of Defense has signed a multi-year contract worth approximately $183 million to procure air munitions from Elbit Systems, the ministry announced this week.

The order was issued by the Defense Procurement Directorate (DPD) and formally signed by Ministry Director General Maj. Gen. (Res.) Amir Baram. The agreement covers the supply of air-delivered munitions manufactured in Israel and is intended to support IDF operational requirements in the near term and over the coming decade.

According to the Ministry of Defense, the procurement is part of a broader strategy to expand Israel’s defense industrial base while ensuring long-term supply security during a period of sustained regional conflict. The ministry said the deal will contribute to inventory replenishment and support force readiness across multiple domains.

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Defense Minister Israel Katz said the agreement reflects a policy shift toward strengthening domestic production after two years of continuous combat operations.

“Expanding Israel’s defense industrial base is a top-tier security and national priority,” Katz said. “Throughout two years of war across seven different fronts, Israeli defense industries have demonstrated their vital role in delivering operational superiority and enabling the IDF’s success – in the air, at sea, on land, and across every theater.”

He added, “The policy I’m driving forward prioritizes growing our domestic defense sector, boosting Israeli manufacturing, and deepening partnerships with local industry. A robust industrial base and strong ties with Israeli companies guarantee independence, reliable supply chains, and long-term force development. It strengthens our economy, reinforces national resilience, and equips the IDF to meet security challenges both now and in the future.”

The Ministry of Defense said the Elbit contract is part of a series of multi-year agreements being advanced to sustain force buildup and ensure continuous procurement during prolonged security pressures. Officials said the approach is designed to reduce dependence on external suppliers while maintaining operational continuity.

Maj. Gen. (Res.) Amir Baram said the munitions deal aligns with wider procurement programs across air and land forces.

“This air munitions deal joins a series of multi-year force-building agreements currently being advanced across air, land, and additional domains,” Baram said. “These agreements will enable inventory replenishment and procurement for years ahead, while investing in the expansion of our defense industrial base. This will enhance the IDF’s readiness for a challenging security decade, support increased defense exports, and strengthen the economic resilience of Israel’s defense industries and the broader Israeli economy.”

Elbit Systems, Israel’s largest defense company, supplies a wide range of precision-guided munitions and aviation weapons to the IDF and foreign customers. The company said the new contract will support domestic manufacturing lines while maintaining delivery capacity during high operational demand.

Elbit President and CEO Bezhalel (Butzi) Machlis said the company’s air munitions have been used across multiple operational theaters.

“Elbit Systems has developed and supplied the Defense Ministry with a range of precision munitions that have proven themselves in the field and contributed significantly to Israel’s air superiority across multiple theaters,” Machlis said. “We remain committed to strengthening Israel’s domestic production infrastructure, as part of our partnership and commitment to the IMOD and the IDF, and out of responsibility for the nation’s needs and the preservation of its security.”

Israel has increasingly prioritized domestic procurement since the start of large-scale regional hostilities, citing supply chain risks, delivery timelines, and the need for rapid replenishment during high-intensity operations. Defense officials have repeatedly emphasized that long-term contracts are necessary to stabilize production lines and secure workforce capacity inside Israel.

The Elbit contract follows earlier procurement agreements aimed at expanding local production of weapons, sensors, and platforms, as Israel prepares for continued multi-front security challenges.

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