The procurement focuses on 155mm artillery munitions intended to support the operational needs of the Israel Defense Forces. Officials said the initiative reflects the evolving requirements of current military operations.
The deal is being managed by the Deputy Head of the Defence Procurement Directorate for Land Procurement. It forms part of a broader effort to ensure consistent supply and availability of critical munitions.
Production of the artillery shells will take place at Elbit Systems facilities across Israel. Thousands of employees are already working in three shifts under direction from the Ministry to meet demand.
Officials said the agreement is aligned with a wider strategy to expand domestic manufacturing capacity. The initiative aims to reduce reliance on external sources of munitions supply.
The strategy is being led by Israel Katz and Amir Baram, Director General of the Ministry of Defense. It focuses on strengthening Israel’s internal defence industrial base.
The Ministry said the expansion of local production is intended to enhance long-term operational endurance. It also supports the ability to respond to sustained and evolving security demands.
Officials added that the agreement contributes to broader national defence objectives. It is designed to ensure reliable access to key munitions while reinforcing domestic industrial capabilities.
