Israeli Prime Minister Benjamin Netanyahu has approved a $108 billion plan over the next decade to develop an independent munitions industry. The announcement, made amid international arms restrictions, aims to reduce Israel's reliance on foreign suppliers. It precedes Netanyahu's upcoming meeting with US President Donald Trump to discuss Gaza governance.
On Wednesday, at an Israeli Air Force pilot graduation ceremony, Prime Minister Benjamin Netanyahu revealed a major initiative to bolster Israel's self-sufficiency in defense production. "I approved, along with the defense minister and finance minister, a sum of NIS 350 billion [$108 billion] over the next decade to build an independent Israeli munitions industry," he stated, as reported by the Times of Israel.
Netanyahu emphasized the need to "reduce our dependence on all players, including friends," citing restrictions imposed by various countries on weapons sales to Israel. These include Belgium, France, Italy, Japan, the Netherlands, Slovenia, Spain, the United Kingdom, and the United States during former President Joe Biden's administration. Such measures have been particularly challenging since the war against Hamas began on October 7, 2023.
The timing aligns with Netanyahu's fifth meeting with President Trump since January, scheduled for Monday at Mar-a-Lago. Discussions will cover a proposed new governing entity for Gaza, backed by a Trump-led Board of Peace featuring former UN envoy Nickolay Mladenov on the ground. Special Envoy Steve Witkoff and Jared Kushner are coordinating with Arab partners and Turkey on the ceasefire's second phase, which involves disarming Hamas and demilitarizing the Gaza Strip.
Israel ranks as the world's eighth-largest arms exporter, with $15 billion in sales in 2024, yet it has depended on imports for munitions. Netanyahu has previously pushed for less reliance on foreign equipment, once describing Israel's defense sector as aiming to become a "super-Sparta"—a comment he later clarified applied only to military industry.
Advancements like the Iron Beam laser system, developed with Rafael Defense Industries and Lockheed Martin, underscore this shift. Set for delivery by month's end, it intercepts threats for about $2 each, far cheaper than Iron Dome missiles costing $100,000 to $1 million. The technology is being shared with the US Army's directed energy program.
US aid totals $3.3 billion annually for purchasing American equipment, plus $500 million for joint missile defense. Proponents argue it deters threats from Iran and Hezbollah while benefiting US jobs and technology through real-world testing. However, bipartisan US lawmakers like Marjorie Taylor Greene, Thomas Massie, Ilhan Omar, Rashida Tlaib, Summer Lee, and Al Green have pushed to reduce funding, including a failed July amendment to cut $500 million from Iron Dome. Within Israel, some oppose the aid, viewing it as a constraint on military autonomy and a source of political pressure.
