Israel has signed a $183-million, multi-year deal with Elbit Systems to supply air munitions and expand the country’s domestic defense production.
The order, issued by the Israel Ministry of Defense’s Defense Procurement Directorate, covers air munitions produced locally by Elbit and is designed to expand the country’s defense industrial base while replenishing stocks over several years.
Defense Minister Israel Katz framed the deal as both a security and economic priority, pointing to the role Israeli defense firms have played during two years of multi-front conflict.
According to Katz, growing local production capacity is meant to ensure supply chain resilience, reduce dependence on foreign suppliers, and support sustained force development for what officials describe as a “challenging security decade” ahead.
The Elbit contract is part of a broader set of multi-year agreements spanning air, land, and other domains, aimed at inventory replenishment and industrial expansion.
Beyond near-term readiness, the ministry also sees these deals as a way to support future exports and reinforce the wider Israeli economy.
Strengthening Israel’s Weapons Production
The Elbit air munitions order follows several years of stepped-up Israeli investment in weapons production and stockpiling.
In 2024, the Ministry of Defense signed multiple contracts with Elbit Systems to accelerate the delivery of precision-guided bombs and munitions, citing lessons learned from high-tempo operations and the need for deeper reserves.
Rafael Advanced Defense Systems has also played a growing role. Israel expanded procurement of Iron Dome interceptors in 2025 and began scaling output of the C-Dome naval air defense system, a shipborne variant designed to counter rockets and drones.
Meanwhile, Israel Aerospace Industries continued expanding long-range strike and missile capabilities. The company has consistently obtained state backing to increase production capacity for air-to-surface missiles and precision strike systems, with an emphasis on faster manufacturing cycles and local sourcing of key components.
