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Israel-Palestine-Jordan
Blue-and-White Arms: Tracking Israel’s Long-Term Production and Import Programs
2026-07-16
by Yaakov Lappin

[IsraelAlma] EXECUTIVE SUMMARY
The multi-front war that has continued since October 2023 exposed Israel’s dependence on ammunition supplies from the United States in particular, and from additional countries more broadly, and pushed the defense establishment and the Israeli government into a multi-year effort to build an independent production infrastructure.
All those governments that decided to sanction Israel for defending itself after the deadliest attack on Jews since the Holocaust, while pronouncing “Never again.�
At the level of national policy, Prime Minister Benjamin Netanyahu announced on December 24, 2025 a plan to invest approximately NIS 350 billion over the coming decade in the development of an independent arms industry.

Contract announcements have consistently illustrated the new policy. In the ground forces sphere, on March 30, 2026, the Ministry of Defense signed a deal worth over NIS 150 million with Elbit Systems to manufacture 155 mm artillery shells in Israel.

For the Air Force, two aerial munitions procurement deals were signed with Elbit — one worth approximately NIS 570 million on January 27, 2026, and the second worth approximately NIS 600 million on April 22, 2026.

In the air defense arena, on November 20, 2025, the Ministry of Defense signed a multi-year contract with Rafael to expand Iron Dome production, and alongside it, on April 6, 2026, an increase in the production rate of Arrow interceptors was announced with IAI.

In terms of diversifying procurement sources, Israel is advancing joint production in India and importing components from the Far East, while simultaneously seeking to reduce dependence on the United States with respect to armored vehicles and ground munitions.

At the same time, on June 5, 2026, Israel and the United States opened talks on a new security memorandum of understanding that emphasizes a reciprocal production partnership. The drive for independence in ground munitions aligns with the recommendations of the Nagel Committee, whose author, former National Security Advisor Prof. Brig. Gen. (res.) Jacob Nagel has said that Israel should not be dependent on the United States for armored vehicles and unmanned aerial vehicles, even though it will continue to depend on it for fighter aircraft.

The guiding rationale is that local production lines for shells and armored fighting vehicles will prevent a situation in which a political decision by a future U.S. administration disables warfighting capability in the midst of a conflict.

GROUND FORCES MUNITIONS PRODUCTION
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Posted by:badanov

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