Israel boosts military armored vehicle production with $1.3 billion plan

Authorities approve billion-dollar plan to boost production of advanced tanks and armored vehicles, aiming to replenish and modernize IDF’s fleet after extensive use in war

Yuval Azulay/Calcalist|
The Israeli defense industry is gearing up to expand production of tanks and armored personnel carriers (APCs) used by the IDF in the ongoing Gaza war, with a budget exceeding NIS 5 billion ($1.3 billion).
The plan, approved by the Ministerial Procurement Committee, involves acquiring the latest Merkava tanks, dubbed “Barak,” alongside Namer and Eitan APCs, and was jointly developed by the IDF and the Defense Ministry.
2 View gallery
טנק הברק
טנק הברק
IDF's 'Barak' Merkava tank
(Photo: Effi Sarir)
It includes upgrading infrastructure across industrial firms producing components and enhancing assembly capabilities at the Tank and APC Administration facility in central Israel’s Technology and Maintenance Center.
The Defense Ministry said the approved plan will enable production of dozens of new tanks and APCs for IDF units, expanding the supplier network to meet rising production demands.
Following approval by the Knesset’s Joint Defense Committee on the Defense Budget, the Procurement Administration will sign deals worth billions of shekels with dozens of industries nationwide. The “Barak,” the newest in Israel’s Merkava series and a fifth-generation tank, features advanced technologies from local defense industries, outpacing older models.
The IDF began receiving the first Barak tanks two years ago, just weeks before the October 7, 2023, Hamas massacre, with officials praising its capabilities alongside the Eitan, developed post-2014 Operation Protective Edge in Gaza. The plan also includes a version of the Eitan with a 30mm turret.
2 View gallery
אחד מקציני הגדוד יורד מטנק הברק
אחד מקציני הגדוד יורד מטנק הברק
(Photo: Effi Sarir)
The prolonged fighting in Gaza, involving extensive armored and infantry maneuvers, alongside intense operations along the Syria and Lebanon borders, has strained the IDF’s armored vehicle fleet over the past two years, necessitating repairs and upgrades due to wear. Estimates suggest these vehicles logged over 1 million kilometers (621,000 miles) since the war began.
Against this backdrop, the failed Operation Gideon’s Chariots launched in May has prompted preparations for a second, similar operation, including a phased takeover of Gaza planned to last several months, requiring up to 130,000 reservists and five active-duty divisions. Call-ups for 60,000 reservists started on Wednesday.
The controversial operation, pushed by lawmakers despite IDF warnings of risks to soldiers and hostages still held in Gaza, unfolds as forces face nearly two years of intense deployment. Defense Ministry officials highlighted that the plan addresses this strain, ensuring readiness for the new campaign.
Comments
The commenter agrees to the privacy policy of Ynet News and agrees not to submit comments that violate the terms of use, including incitement, libel and expressions that exceed the accepted norms of freedom of speech.
""