Israel advances $1.5 billion plan to up local production of armored vehicles

The acceleration will be carried out in parallel with an expansion of domestic production infrastructure, as part of the ministry’s defense-industrial-base resilience strategy.

By JNS

Defense Minister Israel Katz on Wednesday presented the ministerial Defense Procurement Committee with a comprehensive plan to accelerate production of Israeli armored vehicles and increase their capacity by dozens of tanks and APCs over the next five years, valued at approximately 5 billion shekels ($1.5 billion).

The Armored Vehicle Acceleration Project is led by the Ministry of Defense’s Merkava and Armored Vehicles Directorate (MANTAK), in collaboration with the Defense Procurement Directorate (DPD), the Planning Department, and the IDF’s Ground Forces and Technological and Logistics Directorate.

Under the acceleration program, the ministry will increase Israel’s armored vehicle inventory while boosting production rates of the Merkava Mk. 4 Barak tanks, Namer APCs and Eitan wheeled APCs, including those equipped with a turreted 30mm cannon.

“The Swords of Iron war proved how critical Merkava tanks and Namer and Eitan APCs are for successful IDF ground operations. Today’s approval of this over-5 billion shekel armored vehicle acceleration project is a strategic decision that maintains the IDF’s qualitative military edge and our ability to prevail in any arena,” said Katz.

“This project strengthens both the IDF’s capability and hundreds of defense companies nationwide, many in Israel’s periphery—demonstrating how national security and economic growth go hand in hand. We won’t compromise on Israel’s security and will keep investing in our forces to protect the nation’s future,” he added.

The acceleration will be carried out in parallel with an expansion of domestic production infrastructure, as part of the ministry’s defense-industrial-base resilience strategy.

This effort involves expanding production in industries across Israel that contribute to the Merkava program and improving the infrastructure of the IDF’s depot production facility.

The decision to acquire additional Israeli-developed tanks and APCs stems directly from the advanced armored vehicles’ combat success and supports a comprehensive initiative to enhance the IDF’s maneuvering capabilities.

These platforms have accumulated more than one million kilometers in ongoing operations since the Swords of Iron war began.

The armored vehicle acceleration project will now go to the Knesset’s Joint Committee of the Finance Committee and the Foreign Affairs and Defense Committee on the Defense Budget. Following its approval, the ministry will be able to proceed with signing procurement contracts.

Also on Wednesday, the ministry announced that Xtend has won a multi-million-dollar tender to supply thousands of First Person View (FPV) drones to the IDF Ground Forces.

The initiative is part of a “comprehensive strategy to strengthen Israel’s defense production capacity and local industries while maintaining full support for IDF operational needs now and in the intense decade ahead,” according to the ministry.

The drones will be delivered in the coming months, along with training programs provided by the company, and are expected to bolster the ground forces’ operational capabilities in meeting modern battlefield challenges.