IDF to receive $760 million-worth of much-needed ammunitions from Elbit
IDF to receive $760 million-worth of much-needed ammunitions from Elbit
Since the war began in October, the Ministry of Defense's defense procurement has totaled over $17 billion, with around $11 billion directed to Israeli companies
Elbit Systems will supply ammunition for the IDF's ground forces over the next two years totaling approximately $760 million. This comes in the context of the ongoing war in Gaza and escalating tensions with Hezbollah in Lebanon. Ammunition production is set to take place in all Elbit factories across the country, including the industrial complex in Ramat Hasharon, which is slated for closure at the end of next month. The Ministry of Defense is requesting the Israel Land Authority to delay the closure by at least a year and a half and to exempt Elbit from paying fines, citing the urgent need for increased armament production for the IDF.
Since the war began in October, the Ministry of Defense's defense procurement has totaled over NIS 63 billion (approximately $17.1 billion), with NIS 40 billion ($10.9 billion) directed to Israeli companies. This procurement volume is nearly three times that of a normal year. Elbit stated, "Subject to further developments, which are difficult to predict, the IMOD's increased demand for the Company's products and solutions may continue and could generate material additional orders to the Company."
Upon evacuating the Ramat Hasharon compound, Elbit is expected to transition to full production at its new facility in Ramat Beka in the Negev. According to plans by the company and the Ministry of Defense, production will be carried out simultaneously at both sites due to the immediate need for ammunition.
Earlier this month, Elbit Systems secured a $53 million deal for the sale of unmanned mortar systems to a European customer and won a contract to supply Iron Fist Active Protection Systems (APS) to upgrade the US Army's Bradley M2A4E1 Infantry Fighting Vehicles.
The defense establishment noted that the increase in weapon production in Israel is part of a policy by the Director General of the Ministry of Defense, Eyal Zamir, addressing global shortages of certain ammunition caused partly by the Russia-Ukraine war. These shortages include 120mm and 155mm shells for artillery and armored forces.
Amid heavy global production pressure for these armaments, Israel faces threats of arms embargoes from other countries due to the ongoing conflict in Gaza. Elbit's order backlog at the end of 2023 amounted to $17.8 billion. The company is expected to publish its first-quarter reports at the end of the month.
