Dependence on the US will decrease: Huge deals between the Ministry of Defense and Elbit"

January 7, 2025   

As part of the lessons of the war and dependence on the Americans: The Ministry of Defense announced today (Tuesday) the signing of two major strengthening deals to strengthen the independence of production in Israel. In a ceremony held at the Elbit Systems plant in Ramat Hasharon, the Director General of the Ministry of Defense, Maj. Gen. (res.) Eyal Zamir, and the President and CEO of Elbit Systems, Bezalel (Butzi) Machlis, signed the deals. Both deals are strategic, to strengthen the IDF's resilience and strength: the production of thousands of heavy air weapons - and the establishment of a new national factory for raw materials, with a total investment of approximately NIS 1 billion. Both deals are a central part of the lessons of the war and were carried out after thorough staff work under the direction of the Director General of the Ministry of Defense. The ceremony was attended by Deputy Director General and Head of the Planning Department, Itamar Graf, Head of the IDF's Strategic Planning and Development Directorate, Maj. Gen. Eyal Harel, Deputy Director General and Head of the Strategic Planning and Development Directorate, Zeev Landau, CEO of Elbit Land Systems, Udi Vered, Deputy Head of the Strategic Planning and Development Directorate, Dudi Ovadia, Deputy Head of the Finance Department, Ronit Blum, Chief Economist, Zeev Zilber, and other senior officials. As part of the first deal, which was led by the Defense Procurement Director at the Ministry of Defense (SDPD), Elbit Systems will supply the Ministry of Defense with thousands of heavy aerial bombs. The second deal, led by the Planning Department and Strategic Planning Directorate at the Ministry of Defense, includes the establishment of a national factory for various raw materials, most of which were purchased abroad until the war. The new factory will include advanced production lines for energetic materials, which are used by Israel's defense industries. This project is expected to strengthen the independence of local production and reduce dependence on imported raw materials. "These transactions constitute a central pillar of the Ministry of Defense's policy to promote blue-and-white production independence through the defense industries. The projects are expected to contribute to strengthening the economy, expanding local production lines and ensuring an optimal response to the IDF's current and future operational needs, strengthening the economy and industry," the Defense Ministry says.