Israel has finalized a $183 million multi-year contract with Elbit Systems to supply air munitions while accelerating the expansion of the country’s domestic defense manufacturing base. The agreement, issued by the Israel Ministry of Defense’s Defense Procurement Directorate, focuses on locally produced munitions intended to replenish operational stockpiles over several years.
Defense Minister Israel Katz described the deal as both a strategic security measure and an economic investment, highlighting the critical role Israeli defense companies have played during more than two years of multi-front conflict. The ministry emphasized that strengthening local production capacity will help ensure supply chain resilience, reduce reliance on foreign suppliers, and sustain long-term force development amid what officials have characterized as a challenging security environment.
The Elbit contract forms part of a wider set of multi-year procurement agreements spanning air, land, and other military domains. These deals are designed not only to restore inventories consumed during high-tempo operations but also to expand industrial capacity and support future defense exports, reinforcing Israel’s broader economy.
The latest order follows several years of intensified investment in weapons manufacturing and stockpiling. In 2024, the Ministry of Defense signed multiple agreements with Elbit to accelerate delivery of precision-guided bombs and munitions, citing operational lessons and the need for deeper reserves. Parallel efforts include expanded procurement of Iron Dome interceptors and increased production of the C-Dome naval air defense system by Rafael, alongside continued investments by Israel Aerospace Industries in long-range strike and missile capabilities.
