Israel to increase Merkava, Namer and Eitan production

Israel’s Defence Procurement Committee has approved a substantial plan to expand the production of its armoured vehicles, a move valued at approximately $1.5 billion (€1.29 billion/£1.11 billion). The initiative, spearheaded by Defence Minister Israel Katz and Ministry of Defence Director General Maj. Gen. (Res.) Amir Baram, aims to increase the inventory of Merkava tanks as well as armoured personnel carriers (APCs) over the next five years, according to an August 20 press release from the Israeli Ministry of Defence (IMOD). 

The “Armoured Vehicle Acceleration Project” will boost the production rates of several key platforms, including the Merkava Mk. 4 Barak tanks, Namer APCs, and Eitan wheeled APCs. The plan also includes Eitan variants equipped with a 30mm cannon. According to the IMOD, this decision is a direct result of the combat success of these vehicles, which have collectively accumulated over one million kilometers in operations since the start of the “Swords of Iron War.”

The acceleration will involve a significant expansion of Israel’s domestic production infrastructure. This effort, part of a broader strategy to strengthen the Defence industrial base, will see increased production across many industries, including those in Israel’s peripheral regions. The infrastructure of the Israeli Defence Forces’ (IDF) depot production facility will also be improved.

At present, a lot of production for Israel’s armoured vehicle fleet is conducted abroad. General Dynamics contributes to the Merkava, for instance, and Oshkosh has been contracted to produce hulls for the Eitan fleet. It is not clear how these changes will impact those pre-existing relations if at all. 

The project, led by the IMOD’s Merkava and Armoured Vehicles Directorate (MANTAK), is a collaborative effort with the Defence Procurement Directorate, the Planning Department, and the IDF’s Ground Forces and Technological and Logistics Directorate. Following approval by the Knesset Joint Committee for Defence Budget, the IMOD will proceed with signing procurement contracts with dozens of companies, the press release states.

Defence Minister Israel Katz commented on the decision, stating that the war has proven the critical importance of Merkava tanks and Namer and Eitan APCs for the success of ground operations. He emphasised that the project is a strategic decision that will maintain the IDF’s qualitative military edge and strengthen hundreds of Defence companies across the nation. “National security and economic growth go hand in hand,” he said.

“An intense decade ahead”

In recent times, Israel’s military leadership has focused on enhancing its strategic readiness for future conflicts. Maj. Gen. (Res.) Baram has previously stated that the ministry’s strategy is to support the IDF’s needs in the current conflict while also enhancing readiness for what he describes as an “intense decade ahead.” The focus on advanced technology and modernisation extends beyond armoured vehicles to other defensive systems. For example, the David’s Sling medium-range air defence system recently underwent a successful test of its upgraded capabilities in preparation for these anticipated security challenges. The system is designed to intercept a variety of threats, including ballistic missiles, cruise missiles, and unmanned aerial vehicles.

Modernising the IDF’s armoured vehicle fleet has been an ongoing saga for more than a decade. While the Merkava Mk 4 Barak is well-known and very capable, especially with its Trophy active protection system now able to intercept drones, older vehicles like the M113 have remained in use. The IMOD approved the production of 200 additional Namers in 2024, bringing the total on order at that time to 531, all for delivery by 2027. This was prompted by the deaths of seven Israeli soldiers who were engaged with an RPG during combat in their M113. Namers were fitted with Trophy during production in 2016, and that year the IMOD doubled its Merkava and Namer orders, according to the Jerusalem post, but it is not clear if this meant another 500 Namers were ordered. 

At least 300 of the Merkava Mk 4s have been produced but the war in Gaza and extensive use of the Merkava fleet has led to excessive wear and tear. This outstripped the ability of the IDF’s own repair organisation, the Technology and Maintenance Corps to repair the country’s armoured vehicle fleet. As a result, the IDF has had to approach private industry for help repairing its fleet and returning it to a high level of readiness, according to a YNet News report from 2024. At the same time, it was reported that there were also plans to outsource more of the production, which is also performed by the Technology and Maintenance Corps to local industry. This indicates that the additional numbers of Merkava Mk 4 Barak tanks will be combined with an extensive effort to repair and modernise the existing fleet, a process that is expected to take years. 

This led to a contract in 2025 with Ashot Ashkelon, under which the company will manufacture and supply components for Merkava tanks and Namer APCs, including 1,200 and 1,500 hp transmissions, suspension systems, and drive systems. The contract was valued at more than $23 million (approx £17 million/€19.74 million) and also included the procurement of spare parts and the restoration of advanced systems, which will be delivered to the IDF over the next two years. This was followed a few months later by another order valued at $26 million for the same components and delivery over five years, which was positioned as part of the IMOD’s efforts to build operational readiness of its armoured vehicle fleet, according to press releases from the time. 

The Eitan is the IDF’s first wheeled 8×8 infantry fighting vehicle, and a contract was awarded to Oshkosh in the US in 2022 to produce “hundreds of hulls,” which would then be sent to Israel to be fitted with turrets and the other equipment required. This often includes an Iron Fist active protection system from Elbit. The Eitan and Namer are expected to replace Israel’s fleet of M113s, which is thought to number in the hundreds in terms of operational vehicles, with some thousands held in reserve. 

Calibre comment

It is worth noting that Israel is doubling down on its conventional armoured vehicles based on operational experience. This is at least indicative of the central role that armour plays in urban combat, if not its importance to a force’s wider capabilities in general. Many European countries have made similar observations since the start of the Ukraine war, opting to increase their own fleets of armoured vehicles and armoured formations. There is definitely a need for balance in debate around the role of armour, which was a challenge when anti-tank guided missiles were the primary threat. It is now more heated with the proliferation of drones, which appear – from carefully curated footage – to be the bane of all tanks, everywhere. The reality is much more nuanced, and conversations around the role of conventional capabilities should be equally so. 

By Sam Cranny-Evans, published on August 20, 2025. Credit for the lead image is the Israeli MoD.