Israel greenlights $1.5 billion plan to ramp up tank, APC production

Israel’s Defence Procurement Committee has approved a $1.5 billion plan aimed at boosting the production of tanks and armoured personnel carriers over the next five years.

The programme was presented by Defence Minister Israel Katz and the Ministry of Defence Director General, Maj. Gen. (Res.) Amir Baram, according to foreign media.

The initiative, named the Armoured Vehicle Acceleration Project, will be led by the Ministry’s Merkava and Armoured Vehicles Directorate in coordination with the Defence Procurement Directorate, the Planning Department, and the IDF’s Ground Forces and Technological and Logistics Directorate. Its objective is to expand the IDF’s inventory and accelerate production of Merkava Mk. 4 Barak tanks, Namer APCs, and Eitan wheeled APCs, including variants equipped with 30mm cannons.

In addition to increasing vehicle numbers, the project will enhance domestic production capacity, strengthen Israel’s defence industries, and upgrade infrastructure at the IDF’s depot production facilities. According to the Ministry of Defence, the programme forms part of a broader strategy to reinforce the resilience of Israel’s defence-industrial base.

The decision to expand production follows the operational performance of these platforms in combat. Since the start of the Swords of Iron War, the vehicles have accumulated more than one million kilometres in service.

Defence Minister Israel Katz said, “This decision strengthens the defence industries in the periphery and the industrial base overall, while enhancing the IDF’s battlefield capabilities. Together with the Ministry of Defence Director General, we are promoting a procurement plan worth NIS 5 billion (approximately $1.463 billion) for the acquisition of dozens of Merkava tanks and Namer and Eitan APCs, for the benefit of our soldiers and our national security.”

Maj. Gen. (Res.) Amir Baram added, “The plan we presented to the Defence Procurement Committee today is designed to deliver dozens of tanks and APCs to the IDF in the coming years, while building resilience in the local defence-industrial sector. This is part of a broad programme to strengthen the IDF, which is underway at the Ministry of Defence together with the IDF.”

The project will now be submitted to the Knesset Joint Committee for Defence Budget for approval. Following endorsement, the Ministry of Defence will move forward with signing procurement contracts with multiple companies, worth billions of shekels.

By Tamilla Hasanova