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Israel Defense Budget: 1 Billion Shekel Investment Boosts Military Self-Reliance

IMOD

IMOD Director General Maj. Gen. (Res.) Eyal Zamir IMOD

The Israel Ministry of Defense (IMOD) announced on Tuesday the signing of two significant defense agreements with Elbit Systems, valued at approximately 1 billion Shekels ($276 million). The agreements were formalized during a signing ceremony by IMOD Director General Maj. Gen. (Res.) Eyal Zamir and Elbit Systems President and CEO Bezhalel (Butzi) Machlis.

These strategic agreements play a vital role in strengthening the IDF’s operational endurance and force-building capabilities. They reflect key lessons learned from the war and were developed through comprehensive staff work led by the IMOD’s Director General.

Under the first agreement, led by IMOD’s Defense Procurement Directorate (DPD), Elbit Systems will supply the IMOD with thousands of heavy air munitions.

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The second agreement, led by IMOD’s Planning Department and Directorate of Defense Research & Development (DDR&D), includes establishing a national raw materials plant to produce raw materials that were sourced mainly from abroad before the war. The new facility will feature advanced production lines for energetic materials that Israel’s defense industry uses. This project is expected to strengthen domestic manufacturing independence and reduce reliance on imported raw materials.

The agreements are a key element of the IMOD’s commitment to fostering ‘Blue and White’ manufacturing independence and supporting local defense industries. These projects are expected to boost the economy, expand domestic production capabilities, and provide an optimal response to the IDF’s current and future operational requirements.

The signing ceremony was attended by IMOD deputy director general and head of the Planning Department, Itamar Graff; head of the IDF Planning and Force Build-Up Directorate, Maj. Gen. Eyal Harel; IMOD deputy director general and head of the DPD, Zeev Landau; general manager of Elbit Systems Land, Yehuda (Udi) Vered; deputy director of the IMOD’s DDR&D, Dudi Ovadia; and other senior officials.

“Today, we are laying the foundations for expanding manufacturing independence in two critical areas for the IDF’s operational sustainability – domestic production of heavy air munitions and establishing a national raw materials plant,” said IMOD Director General Maj. Gen. (Res.) Eyal Zamir. “Both agreements will ensure sovereign capability in producing bombs and munitions of all types. We initiated this historic move before the war but accelerated it during it.”

Under both agreements, initial capabilities will soon gradually expand until Israel achieves full independence in both areas. This is a central lesson from the war that will enable the IDF to continue operating powerfully in all theaters.

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