Israeli Ministry signs $760M ammo contracts with high-tech company Elbit

The Israeli Ministry of Defense has signed contracts totaling approximately $760 million in ammunition orders with international high-tech company Elbit Systems throughout 2023, the company announced.

While specific ammunition types were not disclosed, many of these orders follow the Hamas attack on Israel on October 7, 2023.

Before the conflict, the Israel Defense Forces (IDF) had already placed a $60 million order for 155mm ammunition from Elbit in August 2023. By November, the Ministry reported $1.64 billion in local procurement, emphasizing a “Blue and White” initiative to buy domestically.

These $760 million contracts are to be fulfilled over two years. Elbit Systems noted a significant increase in demand from the Israeli Ministry of Defense since the Gaza conflict began, anticipating continued substantial orders.

Additionally, the Ministry requested to delay the closure of an Elbit factory to boost ammunition production.

Elbit produces various types of ammunition, including tanks, artillery, mortar and small-caliber rounds.

In addition to ammunition, the Ministry recently issued a tender for tens of thousands of small arms from Israeli companies, including AR-type rifles and the Tavor rifle.

It also ordered $100 million in electrical systems for tanks and APCs from IMCO, to be delivered over six years for use in Merkava tanks, Namer APCs and the new Eitan APCs.

Elbit Systems Ltd. is an Israeli defense electronics company headquartered in Israel that operates in the fields of aviation, land and naval systems, command and control, computers, intelligence, surveillance and reconnaissance (ISR). The company also deals with unmanned aerial vehicles (UAVs), advanced electro-optics, electro-optical space systems, electronic warfare suites, electronic intelligence systems, data links and communication systems and radio technologies.