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Israel Commits 350 Billion Shekels to Build Independent Arms Industry

The plan seeks to cut reliance on foreign suppliers after two years of war exposed supply risks.

Overview

  • Prime Minister Benjamin Netanyahu announced approval of a decade-long program to expand domestic production of munitions and military systems.
  • He said Israel intends to reduce dependence "even on friends" to avoid procurement bottlenecks in future conflicts.
  • Government data indicate defense will account for about 16% of the 2026 budget, roughly US$35 billion of a US$208 billion total.
  • U.S. support continues, with roughly US$3.3 billion in military funding and US$500 million for missile-defense cooperation provided in 2025.
  • The shift follows sustained multi-front fighting and periods when some countries halted or restricted arms sales to Israel.