Israel has signed a $183 million, multi-year agreement with Elbit Systems to supply air munitions and strengthen the country’s domestic defense manufacturing base. Issued by the Israel Ministry of Defense’s Defense Procurement Directorate, the contract covers locally produced Elbit munitions and is intended to both replenish inventories and expand Israel’s defense industrial capacity over several years.
Defense Minister Israel Katz described the deal as a strategic security and economic priority, highlighting the critical role Israeli defense companies have played during two years of multi-front conflict. He emphasized that expanding domestic production is aimed at ensuring supply chain resilience, reducing dependence on foreign suppliers, and sustaining long-term force development for what officials characterize as a “challenging security decade” ahead.
The Elbit contract forms part of a broader framework of multi-year procurement agreements across air, land, and other domains, focused on stock replenishment and industrial expansion. Beyond near-term readiness, the Ministry of Defense also views these deals as tools to support future exports and reinforce the wider Israeli economy.
This air munitions order follows several years of intensified Israeli investment in weapons production and stockpiling. In 2024, the ministry signed multiple contracts with Elbit to accelerate deliveries of precision-guided munitions, citing operational lessons and the need for deeper reserves. In parallel, Rafael Advanced Defense Systems expanded production of Iron Dome interceptors in 2025 and scaled output of the C-Dome naval air defense system, while Israel Aerospace Industries (IAI) continued to grow long-range strike and missile manufacturing, supported by state backing to increase capacity, shorten production cycles, and localize key components.
