After continuous combat involving Merkava tanks during the war, the longest in IDF history and lasting nearly two years, the military is preparing to renew and upgrade the systems in its battle-worn tanks.
Elbit Systems has been awarded contracts totaling $210 million from the Defense Ministry to carry out the upgrades and replacements for the Merkava tank systems.
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IDF troops operate a Merkava tank on the border with Lebanon
(Photo: Jalaa Marey / AFP)
The process of upgrading and renewing the systems in the IDF’s Merkava tank fleet will take six years, the period specified in the contract, according to Elbit’s announcement.
Among the systems to be upgraded are the tank’s sights, which will be enhanced with artificial intelligence capabilities for panoramic observation both day and night, as well as advanced target detection, identification and tracking. The upgraded electro-optical sights will be lightweight with improved performance.
As part of the refurbishment, Elbit Systems will conduct a comprehensive renewal of the tanks’ electronic assemblies to extend their service life, alongside upgrading additional systems. The contracts also include the provision of spare parts and comprehensive maintenance and support services.
“Elbit Systems is proud to continue serving as a central partner to the Defense Ministry and the IDF in advancing their technological capabilities," Bezhalel Machlis, president and CEO of Elbit Systems, said in a statement. "These new contracts reflect our ongoing commitment to delivering innovative and advanced solutions that enhance the operational effectiveness and survivability of Israel’s armored forces.”
On Tuesday, Elbit released its financial results for Q3 2024, revealing an order backlog of approximately $25 billion. In parallel, the company also recently announced the largest deal in its history—a $2.3 billion contract with an undisclosed client, including undisclosed weapons systems.

