March 27, 2026 | Policy Brief

Israel Aims To Bolster Domestic Munitions Production

March 27, 2026 | Policy Brief

Israel Aims To Bolster Domestic Munitions Production

As the military campaign against Iran continues, Israeli leaders are moving to build greater domestic munition production capacity. Israel’s Ministry of Defense (IMOD) declared “munitions independence” a strategic priority during a meeting with Israel’s leading defense companies on Wednesday.

IMOD Director General Amir Baram made the declaration as Operation Roaring Lion enters its fourth week and continues to consume significant quantities of Israel’s air-launched munitions and air and missile defense interceptors. Since the beginning of 2026, Israel has ordered more than $3 billion in domestic defense procurement, according to IMOD.

Campaign in Iran Drives Production Increases

Israel has struck more than 3,000 Iranian targets as of March 24, according to the Israel Defense Forces (IDF). Defense Minister Israel Katz reportedly said the IDF has employed around four times the number of bombs compared to the 12-Day War in June 2025. The Trump administration’s National Defense Strategy published in January twice identified Israel as a “model ally” and noted that it achieved “historic operational and strategic successes” against Iran last year. That statement is even more true now given the damage the IDF has inflicted on Iran’s military in the current conflict.

On March 3, IMOD instructed Israeli companies to begin “accelerating the production rate of essential offensive and defensive solutions.” On March 9, Baram met with Elbit Systems on scaling up aerial munitions, which he said was “a central focus.” IMOD met with Rafael Advanced Defense Systems on March 12 to view the production lines for David’s Sling and Iron Dome and discuss efforts to further accelerate manufacturing rates in support of ongoing military operations.

Defense Spending and U.S.-Israel Security Cooperation

Israel is on the verge of approving its draft 2026 annual budget, which may help meet the need for increased defense procurement. The March 24 draft, according to the Knesset, included approximately $46 billion (NIS 143 billion) for defense, an increase from 2025’s approximately $41 billion (NIS 136 billion) in defense spending, finalized in September 2025.

The Biden administration delivered an enormous quantity and variety of weapons to Israel after the October 7, 2023, terror attack. In May 2024, however, Washington stopped the delivery of 2,000-pound bombs to Israel over concerns related to their employment in Gaza. That move, among other steps, increased the motivation of some Israelis to reduce their reliance on the United States for munitions.

Increasing Domestic Capacity Is Smart, but U.S. Support Still Needed

In the conflicts with Tehran and its terror proxies since October 7, 2023, Israel has expended enormous quantities of munitions. It needs to replenish, modernize, and expand its air- and ground-launched munitions, as well as its air and missile defense interceptors. This is among Israel’s highest priorities.

Israel would be wise to pursue a three-track strategy. First, it should continue to increase its domestic defense production and reduce reliance on imports where possible. That is particularly smart when it comes to the weapons and munitions that Jerusalem may not be able to obtain either because of political decisions in Washington or because America is understandably focusing on resupplying U.S. forces first. Reducing reliance, however, is much easier than establishing “munitions independence,” which would require domestic production or availability for all components and resources for a respective munition.  

Second, Israel should procure the maximum quantity of munitions it can from the United States in the next few years. In the past, Israel has often taken months or even years to decide whether to procure a particular system. Israel may pay a steep price for such delays in the future as political winds shift. As part of this effort, Israel should bolster efforts to highlight for skeptics in Washington the steps it is taking to distinguish between combatants and noncombatants and protect civilians.

Third, Israel should seek to establish and strengthen security cooperation relationships with third countries, thereby facilitating access to resources necessary for weapons development and production and creating sustained demand for Israeli weapons that will help maintain its growing defense industrial base.

Justin Leopold-Cohen is a senior research analyst at the Center on Military and Political Power (CMPP) at the Foundation for Defense of Democracies (FDD). Bradley Bowman is senior director of CMPP. For more analysis from the authors and CMPP, please subscribe HERE. Follow Bradley on X @Brad_L_Bowman and Justin on X @jleopoldcohen. Follow FDD on X @FDD and @FDD_CMPP. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.