Elbit Systems has been awarded a significant contract to modernize Israel’s Merkava battle tank fleet, one of the most substantial upgrades undertaken in years. The $210 million program, spread over six years, will replace legacy electronic components and integrate next-generation onboard technologies aimed at boosting survivability, firepower, and battlefield awareness.
The modernization effort prioritizes improved battlefield perception and threat engagement. Elbit will deliver AI-powered electro-optical sighting systems that enable 360-degree day and night observation, together with enhanced target detection and tracking tools. The package also provides extensive logistics support, spare parts, and maintenance services to ensure long-term operational reliability for frontline units.
First introduced in the 1970s, the Merkava remains the backbone of Israel’s armored corps, evolving through multiple versions up to the modern Merkava Barak. Renowned for its robust armor, advanced protection systems, and unique crew-centric layout, including a front-mounted engine for increased survivability, the Merkava is engineered for high-threat urban and open-terrain combat. With the latest upgrades, the platform will be better equipped to operate in drone-heavy, electronic warfare, and low-visibility scenarios.
The contract aligns with Israel’s broader initiative to strengthen its armored capabilities amid escalating regional conflict. In August 2025, Israel approved a $1.5-billion program to accelerate production of tanks, armored vehicles, and support platforms. The Ministry of Defense further awarded $155 million to a Rafael-Elbit venture to expand local manufacturing of advanced short-, mid-, and long-wave infrared sensors, which will support ISR missions across drones, aircraft, and space-based systems—enhancing targeting and situational awareness in challenging conditions.
