Israel has approved a $1.5 billion program to fast-track the production of tanks and armored vehicles, aiming to strengthen its ground forces during the ongoing Gaza conflict. The five-year initiative, called the Armored Vehicle Acceleration Project, was introduced by Defense Minister Israel Katz and Defense Ministry Director General Maj. Gen. (Res.) Amir Baram as part of wider modernization efforts.
The plan will scale up assembly lines, upgrade maintenance depots, and inject investment into domestic defense industries. Beyond military objectives, the program is also intended to stimulate economic activity by supporting manufacturing centers across Israel’s peripheral regions.
The project covers advanced systems such as the latest Merkava battle tank, featuring AI-enabled technology, upgraded sensors, and increased firepower. It also includes the Namer armored personnel carrier, based on the Merkava chassis, and the Eitan 8×8 wheeled fighting vehicle, a newer addition to the Israel Defense Forces fleet.
The Ministry of Defense stated that these vehicles have proven highly effective during the Swords of Iron War, logging over one million kilometers in combat since October 2023. With the Defense Procurement Committee’s endorsement, the plan now awaits approval from the Joint Defense Budget Committee before procurement contracts worth billions of shekels are finalized.
