The Israeli Ministry of Defence has signed an approximately $48-million contract with Elbit Systems for tens of thousands of locally produced 155mm artillery shells.
Production will take place at Elbit facilities across Israel, where thousands of employees are already operating around the clock in three shifts, the company said.
The deal forms part of a broader effort to reduce reliance on foreign munition sources and expand domestic production capacity.
It follows a $183-million agreement signed in January with Elbit for the local production of air munitions.
Raw Material Plant
In addition to expanding output, the contracts aim to replenish inventories following operations against Hamas, Hezbollah, and Iran, while supporting future export potential.
To support these efforts, the ministry also contracted Elbit in January 2025 to establish a national raw materials facility, producing inputs that were previously sourced largely from abroad prior to the war with Hamas.
The new plant will feature advanced production lines for energetic materials used by Israel’s defense industry, strengthening domestic manufacturing independence and reducing reliance on imports.
