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Israel Approves $1.4B Plan to Accelerate Tank and Armored Vehicle Production

Israel approves $1.4B plan to accelerate tank and armored vehicle production. Armor Acceleration Program aims to boost national security and economic growth.

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Jerusalem, 20 August, 2025 (TPS-IL) — The Israeli government has approved a major plan to accelerate the production of Merkava tanks and the Tiger and Eitan armored personnel carriers, with a budget exceeding NIS 5 billion ($1.4 billion).

The Armor Acceleration Program, led by the Merkava and Vehicle Administration, will expand production infrastructure nationwide, including in peripheral regions, and increase the pool of domestic suppliers. Defense Minister Israel Katz called the project a strategic investment in both national security and economic growth.

The plan now awaits approval from the Knesset’s Defense Budget Committee before procurement contracts can be finalized.

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