The Israel Defense Procurement Committee has approved a plan worth approximately USD 1.5 billion (EUR 1.29 billion) to expand the country’s main battle tank (MBT) and armoured personnel carrier (APC) production, the Israel Ministry of Defense (IMOD) announced on 20 August 2025.
The plan, presented to the Israel Defense Procurement Committee by Defense Minister Israel Katz and the IMOD director general, Major General (Res) Amir Baram, is a comprehensive initiative to accelerate the production of Israeli armoured vehicles over the next five years. The project will now be transferred to the Knesset Joint Committee for Defense Budget for final approval, after which the IMOD will be able to proceed with signing procurement contracts with dozens of companies worth billions of shekels.
The Armored Vehicle Acceleration Project is led by the IMOD’s Merkava and Armored Vehicles Directorate (MANTAK) in collaboration with the Defense Procurement Directorate (DPD), Planning Department, and the Israel Defense Forces’ (IDF’s) Ground Forces and Technological and Logistics Directorate. Under the acceleration programme, the IMOD will increase the IDF’s armoured vehicle inventory while boosting production rates of the Merkava Mk 4 Barak MBT, Namer tracked APC and Eitan wheeled APC (including those equipped with a turreted 30 mm cannon).
The programme will be carried out in parallel with an expansion of domestic production infrastructure as part of a defence-industrial base resilience strategy initiated by the IMOD director general. This effort involves expanding production in industries across Israel that contribute to the Merkava programme, many of which are located in peripheral regions, and improving the infrastructure of the IDF’s depot production facility.
The decision to acquire additional Israeli-developed tanks and APCs stems directly from their combat success and supports a comprehensive initiative to enhance the IDF’s manoeuvring capabilities, the IMOD stated, noting that these platforms have accumulated more than one million kilometres since operations in Gaza – known in Israel as the Swords of Iron War – began following the 7 October 2023 terrorist attack on Israel by Hamas.
Katz was quoted by the IMOD as stating of the Armored Vehicle Acceleration Project, “The Swords of Iron War proved how critical Merkava tanks and Namer and Eitan APCs are for successful IDF ground operations. Today’s approval of this over NIS 5 billion armoured vehicle acceleration project is a strategic decision that maintains the IDF’s qualitative military edge and our ability to prevail in any arena. This project strengthens both the IDF’s capability and hundreds of defence companies nationwide, many in Israel’s periphery – demonstrating how national security and economic growth go hand in hand. We won’t compromise on Israel’s security and will keep investing in our forces to protect the nation’s future.”
Gen Baram added, “During the Swords of Iron War, the IDF’s advanced armoured vehicle fleet proved its decisive importance for manoeuvring. The achievements of the Merkava, Namer, and Eitan on the battlefield are on a global scale. Accelerating armoured vehicle production is part of the Ministry’s strategy to support the IDF’s needs in the current conflict and to enhance readiness for an intense decade ahead. At the same time, we continue to constantly upgrade the vehicles’ capabilities and develop the next generations of advanced armoured vehicles for the IDF.”
