Elbit Systems has secured a major contract to upgrade Israel’s Merkava main battle tanks, marking one of the most comprehensive modernization programs for the armored fleet in recent years. The $210-million agreement, spanning six years, focuses on replacing outdated electronic assemblies and integrating a new suite of advanced digital systems designed to enhance combat effectiveness and extend the tank’s operational life.
Rather than emphasizing only mechanical upgrades, the program centers on strengthening the Merkava’s ability to detect, track, and engage threats across increasingly complex battlefields. Elbit will provide AI-enhanced electro-optical sights, offering panoramic day and night visibility, alongside improved target acquisition and automatic tracking capabilities. The modernization package also includes spares, maintenance support, and long-term sustainment services to keep the upgraded tanks mission-ready.
The Merkava, introduced in the late 1970s, has evolved across multiple variants—from the Merkava Mk.1 to the advanced Mk.4 and the latest Barak configuration. Known for its heavy armor, powerful armament, and exceptional crew protection, the tank features a front-mounted engine and rear troop exit that maximize survivability in urban and high-threat environments. These upgrades further reinforce its role in multi-domain warfare, especially against threats involving drones, electronic warfare, and nighttime engagements.
Israel’s investment comes amid an accelerated push to enhance its ground combat capabilities during the ongoing war in Gaza. In August 2025, the government approved a $1.5-billion armored vehicle acceleration program to expand production of Merkava tanks, support vehicles, and armored personnel carriers. Additionally, the Ministry of Defense awarded a $155-million contract to a Rafael-Elbit joint venture to scale production of advanced infrared sensors for drones, aircraft, and space systems, enabling improved imaging and targeting in degraded visual conditions.
