Israel bolsters strategic capabilities with new KC-46A refuelers and $1.5 billion armored vehicle investment
In a significant move to enhance its long-range operational capabilities and strengthen its ground forces, the Israeli Ministry of Defense has announced a series of major defense acquisitions. These include the procurement of two additional Boeing KC-46A refueling tankers, a substantial $1.5 billion investment in accelerating the production of advanced armored vehicles, and a push to acquire thousands of cutting-edge first-person-view (FPV) unmanned aerial vehicles (UAVs).
Expanding Air Power: Two New KC-46A Refuelers
The Ministry of Defense confirmed on Wednesday that Director General Maj. Gen. Amir Baram has issued instructions to finalize the contract for two new KC-46A refueling tankers, manufactured by US aerospace giant Boeing. This pivotal acquisition, estimated at $500 million and funded through US financial aid, awaits final approval from the Israel Defense Procurement Ministerial Committee.
These new tankers are vital for the Israeli Air Force (IAF), which has been increasingly reliant on its aging Boeing 707s for demanding long-range missions. The IAF’s operational tempo has intensified since the Hamas attack on October 7, 2023, engaging in conflicts on multiple fronts, including strikes as far as Yemen against Houthi targets and a dramatic 12-day war against Iran, which required challenging 2,000-mile roundtrip flights.
"The new aircraft will be equipped with Israeli systems and adapted to the Israeli Air Force’s operational requirements," the ministry stated, emphasizing the tailored integration of advanced local technology. Maj. Gen. Baram underscored the strategic importance of the acquisition, noting, "The fifth and sixth refueling aircraft will strengthen the IAF — the IDF’s long-range strategic arm — enabling it to reach distant theaters with greater force and scope."
Ido Nehushtan, a former Israeli Air Force commander and current president of Boeing Israel, added, "Boeing takes pride in its longstanding partnership with Israel, a relationship that dates back to the nation’s establishment. The KC-46A tanker aircraft will provide the world’s most advanced multi-mission aerial refueling capability to the IAF." This acquisition represents a critical milestone in the extensive force buildup underway by the Ministry of Defense for the Israel Defense Forces (IDF).
$1.5 Billion Boost for Armored Vehicle Production
On the same day, Minister of Defense Israel Katz and Maj. Gen. Amir Baram presented a comprehensive 5 billion shekel ($1.5 billion USD) investment plan to the Israel Defense Procurement Committee. This ambitious plan aims to accelerate the production of Israeli armored vehicles and increase their capacity by dozens of tanks and Armored Personnel Carriers (APCs) over the next five years, building on previous recommendations and investments outlined in 2024.
This significant investment falls under the "Armored Vehicle Acceleration Project," spearheaded by the Ministry's Merkava and Armored Vehicles Directorate (MANTAK), in collaboration with the Defense Procurement Directorate (DPD), Planning Department, and the IDF’s Ground Forces and Technological and Logistics Directorate. The primary objective is to supply the IDF with a greater number of its most advanced ground systems.
The plan specifically targets the latest model of the Merkava IV, the Merkava IV Barak tank, which was unveiled in 2023. Additionally, production will ramp up for the Namer, a heavy tracked APC built on a Merkava chassis, and the Eitan, a new wheeled APC that became operational in 2023, with the new Eitans to be equipped with 30mm cannons.
The urgency for this investment is amplified by the ongoing conflict in Gaza, known as the "Swords of Iron War," which has seen the IDF's armored corps heavily pressed into service. With the IDF reportedly calling up 60,000 reservists for a new offensive in Gaza and an increased number of regular army tank companies, the reserve system has faced strain. Reports from Hebrew media's Army Radio indicate that elements of the 4th reserve armored brigade are returning to use older Merkava III tanks to allow for continued training on the advanced Merkava IVs, which have been in service with all of Israel’s regular armored brigades since 2016.
The accelerated program will also involve a crucial expansion of domestic production infrastructure, aligning with the Ministry of Defense Director General’s defense-industrial base resilience strategy. This effort will expand production capabilities in industries across Israel that contribute to the Merkava program, many of which are located in peripheral regions, and will also improve the infrastructure of the IDF’s depot production facility.
Following approval by the Knesset Joint Committee for Defense Budget, the Ministry of Defense will proceed with signing procurement contracts with dozens of companies, worth billions of shekels.
Defense Minister Israel Katz emphasized the strategic necessity: "The Swords of Iron War proved how critical Merkava tanks and Namer and Eitan APCs are for successful IDF ground operations. Today’s approval of this over NIS 5 billion armored vehicle acceleration project is a strategic decision that maintains the IDF’s qualitative military edge and our ability to prevail in any arena." He added, "This project strengthens both the IDF’s capability and hundreds of defense companies nationwide, many in Israel’s periphery — demonstrating how national security and economic growth go hand in hand. We won’t compromise on Israel’s security and will keep investing in our forces to protect the nation’s future."
Thousands of FPV Drones for Modern Warfare
Beyond the significant investments in air refueling and armored vehicles, the Ministry of Defense is also channeling millions of dollars into the acquisition of thousands of FPV drones manufactured by XTEND. These drones will be equipped with advanced technology and represent a key component of Maj. Gen. Baram’s drive to invest in Israeli "blue and white" local companies.
"The drones will be delivered to the IDF over the coming months alongside comprehensive training and instruction programs provided by the company, and are expected to significantly enhance the operational capabilities of the Ground Forces while delivering optimal solutions to modern warfare challenges," the ministry noted. This move highlights Israel’s continued adaptation to the evolving landscape of modern warfare, where small, agile, and technologically advanced unmanned systems play an increasingly vital role.
These latest acquisitions and investments collectively underscore Israel's proactive strategy to maintain its qualitative military edge, ensure long-term operational readiness, and support its robust domestic defense industrial base amidst ongoing regional challenges.
