Elbit Systems has signed a deal worth approximately one billion shekels (approximately $275M) with the Israeli Ministry of Defense to produce thousands of heavy air-to-ground bombs for the Israel Defense Forces (IDF) and establish a new national factory for raw materials.
The agreement was signed by Defense Ministry Director General Eyal Zamir and Elbit CEO Bezhalel (Butzi) Machlis.
The new raw materials factory, to be built in southern Israel, will feature production lines for energetic materials required by all defense industries in the country.
According to the Ministry of Defense, this facility is expected to reduce Israel’s reliance on imported raw materials—a critical vulnerability highlighted during the war that began 15 months ago. During that conflict, some countries restricted the export of weapons and key production components, underscoring the need for greater domestic production capabilities.