Israel’s Ministry of Defense has signed a procurement contract with Israeli military technology company Elbit Systems for aerial munitions for the Israel Defense Forces, totaling about $260 million, the ministry announced on Monday.
Manufacturing will take place at Elbit’s domestic facilities, which employ thousands of workers who have been operating at surge capacity since the start of the Swords of Iron war in Gaza in 2023 to meet ministry demands, a ministry spokesperson said in a statement.
If further read that this contract incorporates “operational lessons learned” during Israel’s 22-month war on multiple fronts, ensuring full support for IDF requirements in ongoing operations and future defense planning over the next decade.
With Germany recently declaring an arms export suspension to the Jewish state and the previous U.S. administration withholding of weapons and ammunition shipments to Israel during its war against Hamas in 2024, the IDF has faced challenges in conducting its operations properly with ammunition shortages.
Defense Ministry Director General Maj. Gen. (res.) Amir Baram said that the vital partnership between the government and local defense industries “ensures domestic procurement capacity during challenging times.
“We must look ahead, accelerate production rates, and expedite development of next-generation combat systems to maintain the IDF’s qualitative military edge in the region,” Baram added.
Bezhalel (Butzi) Machlis, the president and CEO of Elbit Systems, stated, “We continue supporting the Israel Ministry of Defense with advanced solutions that enhance the operational readiness of the IDF.
“These new contracts underscore our commitment to delivering cutting-edge technologies that meet the evolving needs of Israel’s defense forces. These newly developed products join Elbit Systems’ growing portfolio of cutting-edge solutions, and I believe they will attract interest from armies around the world, given their relevance to emerging operational needs.”
In June 2024, Prime Minister Benjamin Netanyahu said there had been a steep drop in American weapons shipments to the Israeli military.
“Around four months ago, there was a dramatic decrease in the supply of armaments arriving from the U.S. to Israel,” the premier explained in Hebrew remarks ahead of the weekly Cabinet meeting in Jerusalem.
“For many weeks, we appealed to our American friends to speed up the shipments. We did this time and time again. We did this at the highest levels, and on all levels, and I want to emphasize: We did this behind closed doors,” said Netanyahu, according to a readout from his office.
While Jerusalem received “all kinds of explanations,” the U.S. allegedly failed to fast-track the expected military aid. “Specific items trickled in, but the bulk of armaments were left behind,” Netanyahu charged at the time.
