Tel Aviv, Israel – The Israeli Ministry of Defense announced on Monday a major $48 million contract with Elbit Systems, a leading Israeli defense contractor. Under the contract, the company will supply tens of thousands of 155mm artillery shells to the Israeli army.
Strategy to reduce external dependency
The ministry explained in an official statement that this deal is not merely a routine purchase, but a cornerstone of a broader national strategy aimed at reducing reliance on foreign munitions. By expanding domestic production lines, Tel Aviv seeks to create an independent and sustainable supply chain. This aims to ensure the availability of necessary ammunition in emergencies and to shield the military from any repercussions that might arise from international political pressure or disruptions to global supply chains.
Despite the importance of this deal, the ministry did not disclose the specific delivery schedule for these quantities of ammunition.
A record budget amid war
This announcement coincides with significant political and financial developments. Early Monday morning, the Israeli parliament (Knesset) approved the 2026 state budget, which includes unprecedented and exceptional increases in defense spending.
The budget comes at a time when Israel is engaged in military conflicts on multiple fronts, posing complex logistical and operational challenges. A Knesset statement emphasized that the budget update was tailored to the requirements of “Operation Lion’s Roar.” An additional 30 billion shekels (approximately $10 billion) was allocated to the Ministry of Defense budget. This amendment brings the total defense budget to over 142 billion shekels. These substantial figures underscore Israel’s commitment to massive investments in domestic military industries. This is not only to meet the demands of the current conflict but also to ensure full readiness for any potential regional scenarios. This strategy aims to strengthen Israel’s “defense sovereignty” and localize military technology, ultimately guaranteeing the superiority of Israeli forces on the battlefield.
