Elbit Systems to Upgrade Israel’s Merkava Tanks in $210M Deal
Elbit Systems has landed a major contract to upgrade Israel’s Merkava main battle tanks, marking one of the most significant overhauls of the armored fleet in years.
Under the $210-million agreement, spread across six years, Elbit will replace aging electronic assemblies and integrate a new suite of advanced onboard technologies designed to extend the tanks’ service life.
Instead of focusing solely on hardware renewal, the modernization effort centers on improving how crews see, detect, and engage threats in rapidly shifting combat environments.
Elbit will supply AI-enhanced electro-optical sights capable of panoramic day- and night-time observation, as well as upgraded target acquisition and tracking systems.
The package also includes spares, long-term maintenance, and broad support services that ensure the upgraded Merkavas remain battle-ready for sustained operations.
Bezhalel Machlis, Elbit’s president and CEO, described the project as a continuation of decades of collaboration with the Israeli defense establishment, emphasizing that enhanced survivability and effectiveness remain core goals of the upgrade program.
Merkava Main Battle Tank Role
The Merkava is Israel’s indigenous main battle tank, first introduced in the late 1970s and continuously evolved into successive variants, from the Merkava Mk.1 to the advanced Mk.4 and the new Barak configuration.
Known for its heavy armor, crew protection, and firepower, it has been central to Israel’s ground forces for decades. Its uniquely front-mounted engine and rear exit increase crew survivability, especially in dense or urban warfare settings.
Beyond conventional battlefield roles, the Merkava supports multi-domain operations. Modern upgrades like those from Elbit help it better detect and track threats, engage at longer ranges, and operate more effectively in contested environments such as those involving drones, electronic warfare, or night operations.
This investment comes as Israel fast-tracks its ground combat fleet amid its ongoing war in Gaza. In August 2025, Israel approved an armored vehicle acceleration program worth $1.5 billion to expand production of tanks like the Merkava, as well as support vehicles and armored personnel carriers.
The Ministry of Defense also recently awarded a $155-million contract to a Rafael-Elbit joint venture to expand local production of advanced infrared sensors across short, mid, and long-wave bands. These sensors are expected to be used on drones, aircraft, and space platforms, offering improved imaging and targeting, especially in low-visibility or night conditions.
