The Israeli Ministry of Defence has awarded Elbit Systems a contract worth approximately $48 million for the production of tens of thousands of domestically manufactured 155mm artillery shells. Manufacturing will be carried out at Elbit facilities across Israel, where operations are running continuously in three shifts with thousands of employees.
This agreement is part of a broader strategy to decrease dependence on foreign ammunition supplies while strengthening local production capabilities. It follows a previous $183 million contract signed in January for the domestic production of air-delivered munitions.
Beyond increasing output, these initiatives are aimed at replenishing stockpiles following operations involving Hamas, Hezbollah, and Iran, while also positioning Israel to expand its export potential. As part of this effort, the ministry also commissioned Elbit in January 2025 to establish a national raw materials facility. This plant will produce key inputs that were previously sourced largely from overseas, particularly before the conflict with Hamas.
The facility will incorporate advanced production lines for energetic materials used in Israel’s defense sector, enhancing self-sufficiency and reducing reliance on imports.
